Provider launches market-leading savings account paying five per cent

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Britons can generate as much as £250 in interest over the course of a year at the current rate

Spring has today unveiled its latest savings product, the Accelerate Saver, which offers a variable rate of five per cent AER on deposits of up to £5,000.

The easy access account is now open to both new and existing users of the savings app, with a starting deposit as low as £10.

Someone putting the full £5,000 into the account could generate as much as £250 in interest over the course of a year at the current rate.

The product is designed to give people a straightforward route onto the savings ladder.

Accounts can be set up through the Spring app in minutes, with the platform available for download on both iOS and Android devices via the Apple App Store and Google Play.

The launch follows Spring's own analysis of CACI data, which reveals that a staggering £322billion is currently languishing in current accounts that pay no interest whatsoever.

Within that total, some £60billion is spread across 68 million accounts holding balances of £5,000 or less.

The typical balance sitting in a zero-interest current account stands at £4,008, a figure that suggests millions of people may be overlooking the chance to put their spare cash to better use.

For many, simply redirecting a portion of those funds into a dedicated savings product could mark a meaningful first step towards earning a return.

The data paints a picture of widespread inertia, with vast sums effectively idle when they could be generating interest elsewhere.

Through Open Banking technology, the app links directly to a customer's existing current account, allowing money to flow between the two effortlessly and eliminating any need to change banks.

Derek Sprawling, Head of Money at Spring, said: "The Accelerate Saver has been designed to encourage people with money sitting in a current account earning little or no interest to reconsider their options.

"Too much money is still sitting idle in current accounts, with average balances exceeding £4,000.

"By moving even a portion of those funds into a dedicated savings account, people can take a simple step towards making their money work harder."

He added: "Spring connects seamlessly to a customer's existing current account, making it easy to move money between the two and removing the need to switch current accounts to benefit from competitive rates.

"The Accelerate Saver gives people a straightforward way to separate their savings from their everyday spending, earn interest and build a fund."

Andrew Hagger, Personal Finance Expert at MoneyComms, said: "Taking the first step on your savings journey is often the hardest thing to do once you're up and running then adopting the savings habit almost becomes second nature.

"A five per cent interest rate is a great incentive and will encourage people to start putting money aside, even if it is relatively small sums initially."

Mr Hagger also highlighted the app's ability to show users how much interest they have accumulated during the current month, describing it as a feature that motivates people to continue saving.

"The Spring Accelerate Saver makes it simple to switch money to and from your existing bank account, it also lets you see how much interest you've earned during the current month something that will encourage you to keep saving and growing your first nest egg," he said.