Short term savings

skedge

My girlfriend and I need to save around £3000 over the next 4 months for a holiday and I'm looking for the best way to do it in terms of maximising the amount of interest we receive.

Should i just get the best available ISA or will that not pay out any interest if we close it before the end of the financial year?

Any additional thoughts appreciated.

Cheers

xylophone

You can choose an instant access ISA and close it when you wish - interest will be added on closure.
You just need to be careful that if the account you choose has a bonus, it is not one which is added after you have saved for a certain length of time.
The Coventry Poppy ISA is not one such as you can see from the account summary http://www.coventrybuildingsociety.co.uk/savings-and-investments/cash-isas/cash-isa/cash-isa.aspx
The first year interest rate bonus will be calculated daily and will be earned on your investment up to and including the day before the first anniversary of us accepting your application for this account, or the day before account closure, whichever is earlier. The bonus will be paid at the same time as the variable interest.

skedge

Fantastic, cheers pal!

itsanne

The only problem with that idea is that if you wanted to save into an ISA after your holiday you would have used up part of this year's allowance. Another option would be to consider one of the various current accounts which offer interest.

R_P_W

Interest payments on that amount over that time will be sod all so wont make any real difference

itsanne

R_P_W wrote: »

Interest payments on that amount over that time will be sod all so wont make any real difference

That's true as far as saving for the holiday goes, but if OP manages to save after the holiday losing his ISA allowance could end up a pity in the long term.