Could you be missing out on better returns on your savings?

A huge number of people could be missing out on extra cash because they’ve got savings accounts with low interest rates.

According to research carried out by Spring for The Sun, nearly 50m savings accounts in the UK earn 1.5% or less in interest.

That’s despite the rate of inflation being 2.6%.

If that just sounds like jargon and numbers, let's say what this means in clearer terms.

Basically, the cost of living is going up faster than the interest being paid on these savings accounts.

And if your savings are sitting in an account paying a low rate of interest, you may be missing out on money you could otherwise be earning.

So it’s worth checking what your savings are earning and seeing what else is out there.

Even a small difference in interest could make a noticeable difference to your money over time.

Billions sitting in low-interest accounts

We should point out that we’re not just talking about a few pounds here and there.

The average balance in these low-interest accounts is £6,626, and collectively, they hold a staggering £327bn.

Figures also show that about £275bn of this money is held in accounts with balances of more than £10,000.

So there’s huge amounts of cash that aren’t earning as much as they could month after month.

Saving even a small amount is worth it

When money’s tight, the idea of saving might seem difficult or unrealistic.

But putting even just a small sum aside into an account with a higher interest rate can be a good way to build up a financial reserve over time.

For instance, if you move £1 into a savings account each day, you’re saving £30 a month - or £360 a year.

So you don’t have to give yourself a mountain to climb straight away.

You could make the process even simpler by setting up a standing order so a small amount gets moved into savings after you get paid.

By making it automatic, you won’t even have to think about it.

We’ve put together some tips on how to build a savings habit to help you get started.