Short Term Savings

ianbealessqueek

Whats the best thing to do with short term savings. Like with the yearly holiday savings. Your going to spend within a year and is only going to be up to a grand, a grand and a half.

JimLad

Instant access saver is your best bet i should imagine. Might still get around 3%

Doomcow

Despite all the negativity going about, being able to save and pay for a holiday is great, and £1k - £1.5k is more than some will have to save like ever.

If i was you, i'd look, as JimLad says, to an instant access savers account. Yeah, ok, there is the ISA allowance, but wouldnt you rather use that to build up savings which you wont touch over the course of time (to use for something like wedding / new home etc)

Although interest rates have plummeted lately and people are cryign "oh fix now and be safe for x years" it doesnt give much help to the small time saver.

Do a bit homework and you'll find a half reasonable rate (bearing in mind the current climate) to save with. I believe northern rock are offering instant access @ 3.65% and yorkshire building society at 3.75% still, but these are variable rates and will probably fall shortly, but honestly, wouldnt you rather earn 2% on something other than 0% on nothing or, in a worse case scenario, pay for your holiday on credit card and then pay 20% on what you dont have.

Your choice and a good way to do it in my opinion.