What account should we use to save for our wedding in 2 years?

MissQueen

Hello,
Me and my partner have decided to get married in November 2011.
We think this will give us enough time to save for the big wedding we want.
Ok the plan is that from January 2010 (get xmas out of the way) we are each going to save £250 a month, possibly a bit more depending on finances but DEFINATLY £250 each. So we will be saving in total £500 a month.
My question is where should we save this?
We both have an ISA linked to our bank accounts (nothing in but £1 to keep it open)
The ISAs are with Alliance and Leicester (easy ISA) not sure on the interest rate I think it changes but is around 2%-3%.
Should we seperatly put £250 a month in each ISA?
OR should we open some kind of joint savings account?
I am pretty new to savings accounts and not quite sure on interest rates etc so any advice would be great
Thank you for reading
xxx

CLAPTON

are you really going to spend £2000 on christmas (4 months at 500 per month?)

You can't have a joint ISA anyway so each of you just save 250 per month in the best rate ISA you can find... you can easily check was the interest rate for your A&L is online

MissQueen

Hi no we wont be spending £2000 on xmas,
probably £500ish (we have 3 young children)
but we are using these last few months to clear a few small debts off (holiday next year one of them) then starting debt free in January.
I know you cant have a joint ISA I meant would it be better interest wise to get a joint regular savings account? For example the Halifax 5% one?
I have just checked the Alliance ISA rate and its 2% a year.
Thanks
xxx

bendix

Given the relatively low interest rates around and the short term horizon, is an ISA worth it?

Wouldn't one of these regular saving accounts generating 6% interest be better. That way they could have a joint account, which will be ideal for the boyfriend to raid and disappear with the proceeds when he gets cold feet in October 2011.

MissQueen

Is it just me or do I seem to be getting cocky/unhelpful remarks?
I thought this site was for friendly advice?
Maybe Im being oversensitive but can I get friendly answers please?
Thanks

bendix

For goodness sake, get a sense of humour.

You're not talking about a huge amount of money. ISAs, savings accounts etc - the difference in interest rates will be a pound or two at most. It's hardly worth worrying about.

Go to the bank, tell them what you want to do, and see what they have to offer. What you are talking about are very very simple savings tools.

If you have already done the research and worked out the different interest rates and you realise that you can't have a joint ISA, I don't understand what other answers you're looking for.

Baldur

MissQueen wrote: »

I have just checked the Alliance ISA rate and its 2% a year.

For a start, forget the A&L ISA accounts as:

a) You only have £1 in each (although why you would want to keep it open eludes me)

and

b) there are easy access Cash ISAs which offer better rates - if you have not paid new money into the A&L ISAs since 6th April 2009, an option is to simply open 2009/10 ISAs with whichever provider offers the best rate for your needs.

£250 a month each into an ISA at 3% will earn you around £48.53 each in interest for a year (£97.06 total).
£500 a month into a 5% Regular Saver will earn you around £129.22 in interest for a year.

doire_2

Im getting married next May. We have both opened an ISA each with A&L. We have been saving for over 2 years - for both the wedding and house deposit.

Currently the A&L is under £9,000? = 2% and over £9,000 is 2.5%

When we this years ISA limit saved (should be next month) then we will look for a highsvaers account to save in

mr_fishbulb

Regular saver - keeps you disciplined to save a set amount each month.

Once it matures 12 months later, you can put the lump sum in either an ISA or an instant access savings account (look at interest rates closer to the time). You would then keep up the monthly contributions but put them also into the ISA/Instant Access account as you wouldn't have another 12 months before the wedding and things will need to be paid for in advance.

MissQueen

bendix wrote: »

For goodness sake, get a sense of humour.

You're not talking about a huge amount of money. ISAs, savings accounts etc - the difference in interest rates will be a pound or two at most. It's hardly worth worrying about.

Go to the bank, tell them what you want to do, and see what they have to offer. What you are talking about are very very simple savings tools.

If you have already done the research and worked out the different interest rates and you realise that you can't have a joint ISA, I don't understand what other answers you're looking for.

I do have a sense of humour, I have never once said I want to open a 'joint' ISA so why do you keep saying that? I know you can't have a joint ISA! If you read it properly you will see I said should I open a joint savings account not ISA.

nicko33

Have a look at this thread to find the best Regular Saver
http://forums.moneysavingexpert.com/showthread.html?t=608697

your best bet for year 1 may be the Norwich and Peterborough Family Regular Saver (post #4) at 6%. I guess you and your partner can have 1 each.