Savings News

With wedding season in full swing, many couples are preparing to walk down the aisle on what is one of the most important days of their lives, but with the UK being the fifth most expensive country in the world to host a wedding, the costs can be eye-watering.

According to the 2019 Global Wedding Report, compiled The Knot, WeddingWire and Bodas.net, the average cost of a wedding in the UK stands at £14,740, which excludes rings and a honeymoon. As few couples will have this amount of money to hand to pay for a wedding, many will have to plan in advance and build up a substantial savings pot to pay for their big day. Luckily for those saving up for a wedding, there are a number of savings accounts available providing competitive rates.

While fixed rate bonds are currently providing the best rates in the savings market, these savings accounts are usually not right for those saving for a wedding, as once open they normally do not allow further deposits and can tie money into terms for five-years or more. Instead, savers should look at savings accounts that allow more flexibility with making further additions and withdrawals to their savings.

As recently as two weeks ago, some websites were trumpeting notice accounts as the ‘inflation-beating’ products of choice for investors looking for good returns. However, now that rates for all the top notice accounts have fallen below May’s 2.01% inflation figure we ask if they are still the best option for middle of the road savers?

Nothing stands still in the finance sector for long. Just like the apex-predator of the oceans, the shark, it seems that savings products have one rule: keep moving or die. But in this constantly fluid environment, where can the smart investor go to find a safe, semi-permanent home for their hard earned savings?

For many people, notice accounts occupy the temperate zone in between the sparse, interest-rate poor stretches of instant access and the frozen fund tundra of the long-term bond.

With inflation falling to 2.00% earlier this week, it meant good news for savers as more accounts are now offering rates that can match or beat inflation. All the top rates in our fixed rate bonds chart offer rates above inflation, while the best rates in the notice account and easy access savings charts are still below inflation, however they remain highly competitive this week.

Inflation has fallen to 2.0% in May, down from 2.1% in April, which is good news for savers as it means more savings accounts now beat inflation. There are now 116 savings accounts that offer inflation-beating rates for a £10,000 deposit, the majority of which are within the fixed-rate bond sector. The reduction in the rate of inflation has resulted in 20 additional savings accounts that can now match, or beat, inflation.