A reader from Derbyshire is saving for a dream holiday in Australia next year and wants a savings account to help her.
Andy McKechnie, head of sales and marketing for savings at Halifax, tackles the problem.
Anna from Derby asks:
My boyfriend and I are saving for our dream holiday to Australia and we plan to take in August next year.
We need a high interest savings account which we can access in a year’s time. Any ideas what type would be best?
There are a number of different types of savings accounts that could help you save for your holiday down under – you may find that more than one can help you make the most of your savings!
If you already have some money put aside, a 12 month fixed term savings account may help you get the most in terms of interest. Fixed term accounts tend to offer higher interest rates if you don’t need access at all within the next 12 months.
Most savings providers offer 12 month fixed term accounts (often called ‘bonds’), with some offering limited offer accounts which combine guaranteed fixed rates and access – which is great if you need to access you savings before the 12 months is up (hotel deposits.etc).
In addition, if you’re looking to continue to grow your savings in time for your holiday, a regular savings account could help.
These allow you save from £25 to up to £500 each month from your current account by standing order – after 12 months all your savings and interest earned are usually transferred into an easy access savings account, allowing you access, while the regular savings account remains open and you continue to save.
Regular savings accounts usually offer competitive fixed rates of interest, however some require other commitments like opening a bank account – it’s good to shop around to find the right one for you.
If you have a question for Andy, go to the myfinances.co.uk Ask the Savings Expert section.
Or for more information on your savings options go to savings at Halifax.
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