Short term saving advice

Backtothebooks

Hi,

This is my first post and I would really welcome any advice on my situation.

Two months ago I celebrated my first month not being in debt after 15 years - it was an enormous relief! While paying off my debts and forming new habits I learned a lot about borrowing, but my knowledge of saving is almost non-existant. In the past I simply had none....

Part of my motivation for getting things in order are my plans to return to full-time education in September. I am planning to study in the US, and am now busy saving every spare penny to help with the costs of my future education.

I am currently in a well-paid job and think i could save between £1500 and £2000 a month, but am aware I may need to draw on at least some of this money within a calendar year.As a basic question (apologies in advance) is it worth me shopping around for savings accounts when I could possibly be withdrawing or transfering lots of the money within the next 9 months? I already have a cash ISA so am looking at the best place to keep the rest....

Another option would be to transfer some money to an American savings account. I am no forex expert, but am aware that the cost of my education has already increased massively due to the exchange rate changes in recent months. I don't feel well enough placed to judge where we might be in a cycle or whether its best to save now in £ or $ but if anyone has an opinion on what they would do in such a situation I'd be very grateful for any advice.

So in short - we're talking about hopefully around £15k savings total which will build gradually over the next 9 months.

Thanks again!

Reaper

Considering the all round low rates and the fact you are drip feeding into a savings account over a short period you are not going to earn a great deal of interest. On the other hand you might just as well go for one that pays a better rate of interest if you need to open something anyway.

You can't really predict whether the £ will get weaker or stronger against the $. If you are saving up to spend aborad then I'd favour saving in dollars because it protects you against fluctuations. If the £ gets stronger you'll wish you hadn't but if the $ gets stronger and you don't you might find yourself unable to afford to go which would be much worse.

I have no idea how easy it is to open an American savings account when you are not a resident, but I believe some UK banks do dollar savings accounts if you can't get one.

Good luck

richardlionheart

maybe something like this

http://www.citibank.co.uk/personal/banking/international/currency.htm?merchant=citi

Backtothebooks

Thanks very much both of you for your replies, I appreciate your help!