Reluctance to diversify and move savings is causing many savers to miss out on better rates, according to a new report for UK Savings Week.

Despite competitive interest rates, UK savers - who have £1.5trn saved - are reluctant to move their money to find better returns, according to the report from fintech Flagstone.

The average UK adult has an average of £1,000 to £5,000 in savings spread across two to five different savings account. However, savers are not moving these funds to maximise better rates and returns.

A quarter of savers with multiple savings accounts surveyed by Flagstone keep them with one bank.

Over half (58%) held most of their savings with the same bank that maintains their current account.

Almost two thirds (62%) of savers had not moved savings to a new savings account at a different bank within the last 12 months, despite competitive rates often available elsewhere.

Half (49%) of savers surveyed had not moved savings between existing saving accounts within the same bank during the past 12 months.

Three in five (57%) had not moved savings into new savings accounts within the same bank during the past 12 months.

Claire Jones, head of strategic relationships at Flagstone, called on the government to address saver inertia before making tax policy changes.

She said: “Despite efforts by banks and the regulator to make moving savings between banks more attractive and convenient than ever, simply not enough savers are motivated to seek better terms and rates to grow their hard-earned savings.

“With the base rate now in gradual decline and the new government readying multiple tax policy changes that’ll make investing less palatable for many, finding the best savings rates to make your money work harder in an almost risk-free, low-effort way is more important than ever. Saver inertia must be tackled before tax policy changes take the shine off investments.”

According to Flagstone’s analysis of January credit data from the Bank of England, the current size of the UK savings market stands at £1.5trn, but as much as £1.1trn of that cash is earning savers less than 2%.

• Opinium surveyed 2,000 UK adults in the second quarter of this year on behalf of fintech and cash savings platform Flagstone.