best place to save £2000 per month

Richie_D_2

I am planning a big trip for 2 years time (Jan 2017).

I want to save £2,000 a month for the next 2 years.

I could possibly need access to some of the cash to buy plane tickets, book hotels etc. However if it makes a big difference I could just buy those things with the money I would have saved that month and not save as much.

I am leaning towards an ISA (its me and my wife, so 1 each) but recently I was hearing that some bank accounts are giving better returns.

I am open to any other options people suggest.

I am looking at 'low' to 'no' risk.

Archi_Bald

ISAs pay terrible interest. Look for current accounts (TSB, Lloyds, Santander, Tesco). Huge amount of info on these the forum.

PeacefulWaters

Look at the links at the top of the page.

A mix of current accounts (jumping through hoops) and regular saver accounts will help you maximise returns.

Assuming you're traveling overseas, look into getting a Halifax Clarity Credit Card too. Time to build the credit limit ahead of travel.

Richie_D_2

Thanks, for the advice.

As the interest on non ISA savings is taxable do you have any ideas on what sort of difference I need to get in rates?

So for example would an ISA paying 2% still be better than a current account paying 3%?

Onawingandaprayer

Assume your wife is a tax-payer? If not, there are different options.

Richie_D_2

Yes, my wife is a tax-payer.

PeacefulWaters

Richie_D wrote: »

Thanks, for the advice.

As the interest on non ISA savings is taxable do you have any ideas on what sort of difference I need to get in rates?

So for example would an ISA paying 2% still be better than a current account paying 3%?

Deduct your highest rate of tax from non-ISA interest for comparison.

e.g. A 20% taxpayer earning 3.00% would receive 2.40% after tax. A 40% taxpayer drops to 1.80%.