Without intending to burst any romantic bubbles, Moneyfacts has discovered that the price of true love may be out of reach for anyone who thought they could use the interest gained on their savings to fund their affairs of the heart.
By analysing the average interest paid on the most popular savings vehicles, such as easy access accounts, ISAs and fixed rate bonds, it is clear to see that winning someone’s devotion will have to be a ‘long game’ rather than an impulsive act of love.
Sadly, it would take someone using the interest paid on £10,000 in an average easy access account over 22 years to buy a £1,500 engagement ring, the most expensive item on our lovers’ list. And it would take a disappointing two weeks to save for a £2.50 Valentine’s card.
|Valentine's Day costs based on £10,000 savings|
|How many days to save|
|Potential purchases||Approx cost||Easy Access Account||Average Cash ISA||One-Year Fixed Rate||Five-Year Fixed Rate|
|Valentine's card||£2.50||14 days||6 days||6 days||4 days|
|Meal for two - eating in||£10||55 days||25 days||26 days||14 days|
|Chocolates||£15||83 days||38 days||39 days||22 days|
|Champagne||£30||166 days||76 days||78 days||43 days|
|Meal for two - eating out||£40||221 days||101 days||104 days||57 days|
|Flowers - dozen roses||£50||277 days||126 days||129 days||72 days|
|Perfume||£50||277 days||126 days||129 days||72 days|
|West End Show for two||£70||387 days||176 days||181 days||101 days|
|Last minute trip to Paris (Eurostar + hotel stay)||£600||3,318 days||1,510 days||1,533 days||862 days|
|Engagement ring||£1,500||8,295 days||3,776 days||3,883 days||2,156 days|
|Average Easy Access Account||0.66%|
|Average ISA Rate||1.45%|
|Average One-Year Fixed Rate Bond||1.41%|
|Average Two-Year Fixed Rate Bond||1.73%|
|Average Five-Year Fixed Rate Bond||2.54%|
There’s a serious message in this latest research as it clearly shows that the interest paid on savings accounts is not anywhere near enough to supplement anyone’s income.
For those who are reliant on savings income, there are no easy answers.
However, those looking to treat their loved ones this Valentine’s Day may consider using a 0% purchase credit card instead, which allows them to spread the cost over several months without interest.
Alternatively, if your beloved is miserable this Valentine’s Day, have a heart - it may not be their fault. Savers are just not going to become spenders until rates start to go up.