Saving for holiday - Best place to save

thomas0735

I want to save up to take the children to Disneyland Paris for my 40th birthday and I'm trying to decide where the best place is to save. I'm a non taxpayer and I want to put aside £13 a week for 3yrs 1mth (163 weeks to be exact). Which would be better and give me a better return on my money? An ISA or a regular savings?

Thanks

:beer:

latecomer

Generally you get the best interest rates using regular savers and then at the end of the year transfer into the best standard savings account you can find. If you are a non-tax payer then ISA dont give you any benefit over a standard account

SevenOfNine

If you are sure you won't be using your annual tax allowance, therefore can utilise the R85 form to get your interest tax free, I'd opt for a monthly saver a/c for the first year.

We just opened one after looking at the savings guide on here (for a specific odd bit of monthly cash), with Yorkshire BS. Pays 1% (variable rate) with a bonus after 11th payment of additional 2%. You are allowed 1 withdrawal only, just in case!

However, you CANNOT miss a monthly payment in or you sacrifice the additional 2% bonus, so you must be sure you can make that without fail.

Have a look here, there's a calculator to compare with ISA rates & as non taxpayer the monthly looks better.............though all rates are just rubbish at the moment! http://www.moneysavingexpert.com/savings/best-regular-savings-accounts