About £280 billion is sitting in UK bank accounts earning no interest, according to new data released by the UK central bank.

Currently, interest rates are above 5% for some savings accounts.

Salford-based investment platform giant AJ Bell said just a 3% return on last year’s zero-interest cash could have earned UK savers £6.9 billion.

It said those with savings of £50,000 are missing out on potential annual interest of almost £2,300.

Laura Suter, director of personal finance at AJ Bell, said: “If you want one figure to sum up the apathy of the UK’s savers, it’s the fact that £280 billion is sitting in accounts earning absolutely no interest, at a time when interest rates are north of 5% for some savings accounts.

“The latest Bank of England data to the end of March shows that there is a mountain of cash paying no interest, which has ballooned in recent years despite the Bank of England’s base rate rising and savings rates remaining decent. The pile of cash getting no return has grown in the past year, by £51 billion.

“The nation is missing out on millions of pounds of potential returns on their money. Even if the £230 billion sitting in zero-paying accounts a year ago had earned a rather pedestrian 3% return on the cash in the past 12 months, it would have made the nation £6.9 billion richer.

“Not only is the money not earning any interest, it’s also being eaten away by inflation. While inflation has dropped from its double-digit highs, it is still chipping away at the spending power of your money each year.

“Keeping the money in your current account or an old savings account earning nothing is as good as stuffing it under your mattress – although admittedly the latter is probably a more comfortable option for sleeping at night.

“The last time interest rates were at 4.5% was in October 2008 and at that point just £39 billion was sitting in these accounts paying no interest. The amount languishing in zero-paying accounts grew during the period where interest rates were below zero, climbing to £154 billion in July 2019.

“The slashing of base rate during Covid only boosted the cash pile further, rising to £231 billion during a period where rates hit a low of just 0.1%. But the jump in the base rate since then has done nothing to dent the pile of money earning nothing, and in fact it grew to reach a peak of £282 billion in November last year.

“It’s been mooted that the government is planning to cut the amount of money people can hold in Cash ISAs, as a way to help move more people into investing. But people also need to take action themselves to ensure that they are getting the most from their cash.

“The top paying easy-access savings account is paying 4.59% currently, meaning those with £15,000 in savings could be earning £688.50 a year in interest. Assuming no other savings income, this would be covered by the personal savings allowance, meaning it is tax free. Those with meatier savings of £50,000 are missing out on potential annual interest of almost £2,300.”