Investment of holiday expenditure.

HandD

I've booked a holiday for late 2026. The bill is to be paid before June 2026 and if paid in full before that date, has no interest.

I had planned to pay in just over £1200 per month but my thinking is, would I be better to pay that monthly amount into a savings account somewhere instead, pay the balance off in June in 1 payment and reap the benefit of interest paid in the meantime.

I've had a look around but I'm struggling to find anywhere that allows more than £500 per month and doesn't rely on an existing current account. Any ideas? 

Edit: the amount is not from a lump sum, it's from disposable income monthly.

eskbanker

You can use multiple regular savers to maximise your return, but if that's more effort than you're happy with then you can use other types of account, such as fixed term, notice or even easy access....

AlanP_2

It sounds like you have been looking at Regular Savers which have a monthly contribution limit.

Interest rate is generally higher but limited amount can be paid in.

Have you used your ISA allowance up? Particularly useful if you are a HR taxpayer and any interest > £500 would be taxed.

What many of us in here do is put money in an easy access account and then drip feed it in to regular savers.

Albermarle

With a normal easy access savings account, there would not be any problem adding more than £500 per month, or £5,000 for that matter.
Best Easy Access Savings Accounts | Up to 5.00% Jan 2025

HandD

AlanP_2 said:

... What many of us in here do is put money in an easy access account and then drip feed it in to regular savers.

I've had a look at some videos on this. Apologies, the £1200 per month isn't coming from a lump sum. It's disposable income I suppose. I'll add an edit to the original post. Does this mean I'm back to splitting it into regular savers? 

Thanks for all the replies.