Saving for Driving Lessons

Hajoco

Hello, I want to save some money in some sort of an account and would like anyones help, to tell me which one etc.
I want to save up for driving lessons. I'm 16 at the moment, and turn 17 in July, so i'd just like to be adding say £40 a month into an account, but will be taking it out in chunks after July and was hoping to keep adding to it afterwards for insurance etc. I have a current account, but wanted to keep this separate to stop me being tempted to spend it. Which savings account would best suit me?

daveonline

Your best bet would be a mini cash isa and set up a direct debit to make regular payments each month.
If you went for a monthly savings account most have clauses on how many withdrawals you can make so not a good idea if you need to take money out frequently.
Out of the best mini cash isas available the Halifax saver direct seems best as you can make unlimited withdrawals of more than £10 by phone or online.
You can check this out yourself by visiting the following site and enter your details to find the best rate, watch out for clauses like short term interest rate bonuses and restrictions on withdrawals.
Hope this helps and good luck with the driving lessons.

http://www.moneysupermarket.com/default.asp?Source=MS

Katgoddess

When I was learning to drive last year I put the money I had set aside for driving lessons in an instant e savings account linked to my current account. The lessons cost £35 a week so for 2 weeks in the month I used money from my wages in the current account, and the other 2 weeks I moved the £35 over to the current account. This maximised the time the money was on the savings account.

The reason I used an e savings account instead of an ISA was because I could move money to and from it easily on the internet. To withdraw money to and from my barclays ISA account I had to either ring them up or go into a branch. To much effort for me. You will probably find an ISA account with better easy access.

Or just use your ISA for your long term savings to buy a car and insurance, and a high interest savings account for your lessons. I like keeping my money in different accounts for different things. But thats just me...

Also you can only put £3000 into an ISA account per year. So if you put £300 into it and withdraw it, you can only put another £2700 into it for the year.

Sorry if I've confused you...

System

I would open an online savings account with my bank if i were you. You can move funds from your accounts within seconds or do what i do, i have set up a few standing orders, so that every week, the money is taken from my main account and paid into my online savings accounts. Then when i need to draw from them, i just transfer the money back.

Kerry_o'keefe

Hajoco

If you or your relatives have tesco clubcard vouchers you can exchange them with BSM. I think six lessons would cost £55 clubcard vouchers (equivalent to £220). I know you probably won't be able to use BSM for everything buit it may help. There are also numerous threads of how to get more clubcard vouchers. If you or yours don't use tesco - sorry to have bothered you.