Savings for 1 year

angelstar1

Please help! 4 friends and I are looking to start a savings plan for the next 12-18mths, so we can go on a joint mini-break to celebrate our 40th birthdays in 2012. I've suggested that we open a joint savings account, but now I'm not quite sure how to ensure the best deal. We can only invest £10-£20 per month (so it'll be a real "mini" break!). Is a cash ISA the best way to go (we don't have a lump sum) or a regular saver, such as the First Direct Regular Saver at 8%? Any tips much appreciated.
:A

psychic_teabag

There's no such thing as a joint ISA. And joint accounts often don't allow more than two named people. I think the First Direct regular saver requires a current account, and you probably don't want to tie all your financial affairs together by having joint current accounts.

It's not clear whether you mean £20 each per month, or a total of £20 per month between you. From the regular-saver calculator
http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#calculator
saving £20 per month even at 8% will only earn £10 interest before tax over the year. But reg. savers often have a minimum per month, and £20 may not be enough.

Best suggestion I can think of is to get Halifax reward current accounts and pass £1000 through them all, giving £5 reward per month per account. This doesn't have to be a "new" £1000 saved every month - you can just pass £1000 of your normal through the accounts sequentially (or £500 twice per month) before you use it to pay your bills. In theory you could all club together to pool £1000 and then pass the same £1000 through all the accounts. However, that probably counts as making gifts of £1000 to each other each month, which might attract the attention of the authorities in some way or other. (Not sure how, exactly, but ...)

angelstar1

Thanks psychic teabag, I will look into the Halifax option. Yes, I did mean £20 each per month, so only £100 per month being deposited, not much I know, but teacher's and nurses salaries don't go far these days!
Thanks again for the advice