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While next year’s summer holiday might seem like a long time away, consumers looking for a financially stress-free holiday should consider starting to save for their 2020 trip today.
Starting a 2020 holiday savings fund now enables holidaymakers to spread the cost of their summer holiday over a 12-month period, as well as enabling them to benefit from the current competitive savings rates. There are many different options for those wanting to start a 2020 summer holiday savings fund, including regular savings accounts, easy access savings accounts and notice accounts.
Regular savings accounts are ideal for those looking to save towards a summer holiday but who lack the discipline to save each month, as the account requires a minimum deposit to be made each month. Currently, the best regular savings account rate available on an account with no opening restrictions is Kent Reliance’s 1 Year Regular Savings – Issue 3. This one-year account offers a rate of 3.00% AER on a minimum opening deposit of £25. It requires a minimum of £1 to a maximum of £500 to be paid into the account each month and, if a payment is missed, the account is closed and transferred to an easy access savings account. It can only be opened and managed in branch.
For those who don’t want the commitment of a regular savings account, a good alternative is an easy access savings account that restricts withdrawals so that funds can’t be regularly withdrawn. Virgin Money offers a top rate of 1.50% AER on its Double Take E-Saver Issue 10 and Man Utd Double Take E-Saver Issue 5, both of which restrict withdrawals to two per calendar year including closure but allow unlimited further deposits. These online-only accounts can be opened with a minimum deposit of just £1.
Another savings option that is ideal for those who know in advance when they want to withdraw their savings is a notice account. OakNorth offers two highly competitive notice accounts that pay monthly interest and require a minimum opening deposit of just £1. Its 120 Day Notice Deposit offers 1.79% AER, while its 90 Day Notice Deposit offers 1.77% AER. Both accounts are online-only and allow unlimited further additions, while withdrawals can be made on both accounts subject to 120 days’ notice on the 120 Day Notice Deposit and 90 days’ notice on the 90 Day Notice Deposit. Savers should be aware that a minimum withdrawal of £1,000 is required with both these accounts.
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