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Millions of Brits keeping money in savings accounts are being warned they could be missing out on thousands of pounds in potential returns over time. New analysis from Hargreaves Lansdown suggests that cash savings may significantly underperform compared to long-term investing.

The figures show that £1,000 placed in an average savings account would grow to just £1,205 over 10 years. By contrast, the same amount invested in line with a global index, with dividends reinvested, could reach £3,350. The findings come as part of a new push to encourage more people to move from saving into investing, with research showing 44% of savers are interested in learning more but lack confidence or knowledge.

Emma Wall, chief investment strategist, Hargreaves Lansdown: "We're proud to be part of the Retail Investor Campaign, to help people take simple steps towards meeting their future life goals.

"Having better access to information and knowing how easily you can get started will hopefully make many more people confident enough to go from being savers to becoming investors.

"It is completely understandable that many people might lack confidence or don't think that investing is for them.

"And of course, the time must feel right before making the move. But if you really want to make your money work harder then you should ask if investing is right for you."

The analysis suggests modest savings returns over time in an average savings account, particularly when compared with global markets tracked by the MSCI All Country World Index.

Ms Wall added: "There are many reasons why individuals might want to keep cash stores, especially when times are changing or challenging. And you can still lock in online inflation beating rates, at this time.

"But longer-term, you could be missing out on thousands of pounds in returns, and this could significantly impact your long-term outcomes, be that a comfortable retirement or moving onto or up the housing ladder."

The company's analysis shows that a £1,000 deposit in an average savings account would grow to £1,180 after five years and £1,205 after 10, rising to £1,439 over 20 years and £2,430 after three decades.

By contrast, the same sum invested in a global index could reach £1,521 after five years and £2,679 after 10, increasing to £3,904 over 20 years and £6,007 after 30. With dividends reinvested, returns climb further to £1,684, £3,350, £6,357 and £11,779 respectively.

The gap becomes more pronounced with larger sums. A £10,000 savings pot would grow to £12,054 over 10 years and £24,330 over 30, compared with £26,792 and £60,074 if invested in the same index.