The amount of money stagnating in 0% interest accounts has risen by £10billion in the past 12 months, meaning many savers aren't earning a single penny on their hard earned cash.

Today, more than £173billion is languishing in these accounts, according to investment platform easyMoney.

In 2009, this stood at just £18.5billion.

In many cases, easyMoney said loyal customers are being offered accounts paying interest, only to see this rate cut to near zero after a year.

Given prices are rising by 1.8% a year on average that means those who don’t shop around for better options risk losing money in real terms.

Andrew de Candole, chief executive of easyMoney, said: "A staggering amount of savers' money is sitting in accounts that offer them literally nothing at all."

The Bank of England has continued to hold interest rates at 0.75% since August 2018, much to the despair of savers

"It’s easy to just blame the high street banks for the poor rates on offer but the Bank of England has made a significant contribution to the issue as far as savers are concerned.

"In the wake of the financial crisis the Bank of England has stabilised the economy but they have smothered Britain’s savers with record-low rates for more than a decade now.

"There is no sign of respite for people holding their savings in cash.

"To stop their funds being eaten up by inflation people might want to consider allocating some of their money to higher-interest options that really deliver returns."

Figures by comparison website MoneyFacts show that the top-paying easy access and fixed-rate bonds have also dropped month-on-month - with the top five-year deal now just 0.4 points lower 2.1%.

Overall, the number of accounts that are currently outstripping inflation has fallen from 331 in January to 21 today – in other words, savers would now need to opt for a fixed rate account to see their money rise faster than prices.

Signs sit outside branches
Banks are taking advantage of your loyalty

"Savings rates have continued on the downward spiral this month, as a lack of competition takes its toll," Rachel Springall, finance expert at Moneyfacts.co.uk, said.

"The top one-year fixed rate bond in the market now pays 0.15% less than last month while the top five-year rate pays 0.40% less.

"A year ago, savers would have found a top one-year fixed bond paying 2.15%, but today not even the top five-year fixed rate bond will pay this return.

"This could dishearten savers who may be coming off a one-year fixed bond and are searching for an equivalent rate over a similar term.

"While savers escaped a base rate cut from the Bank of England this month, there is uncertainty as to whether this could be just around the corner or indeed later this year.

"Regardless of any change, it is vital that savers shop around as it is clear to see that speed is key to grab the most lucrative rates."

We've got a full guide on best savings accounts, including easy access, children's accounts and bonds here.

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