ISA for instant access?

Pusser1

I want to start saving now for a holiday in Oct 06. I will be saving at least £300 per month. Obviously I will need to get it out when the hols need paying for and without losing any bonuses? Presumably if I don't leave it in for a whole year I will lose out?
Would I be better off going for an instant access savings.

Thanks

thor

Most cash ISAs don't pay out bonuses anyway(in fact I can't think of any off the top of my head). They are popular because you do not have to pay any tax on the interest earned so this will not be a problem for you if you intend to withdraw in 8 or 9 months time. You could have a problem if you are wanting to use the ISA to save for the long term as there is a limit of £3000 on cash deposits per annum as you appear to be able to save more then this amount('at least £300 per month') but you might not be planning this in which case I say go for an ISA as this will maximise the amount of interest you can earn. Check out the ISAs mentioned on this forum and make sure you read the terms and conditions to see that any account you apply to does indeed allow you to make instant withdrawals. I think the halifax ISA has a good rate and not too many strings attached but make sure you check this out for yourself first.