Can I open a regular saver for 4 months?

12helensp

Is it possible to open a regular saver account just for 4 months?

the problem is that I want to start saving for my hols this summer and I have about £2000 and probs could add £250-300 each month to that, but I need the money at the start of summer so thats july/august. Could this be possible for me?

Also can you have a regular saver if you are under 18, its not really a problem as my birthdays soon but if I could open it earlier I would.

Thanks!

McSaver

A regular saver isnt the best account for your money since you will need it in 4 months, therefore your looking at easy access. OR you could use this years ISA allowence (which ends april 5th) for your money.

Froglet

You could but you would get a VERY poor rate of interest becuase you are not leaving it in for 12 months.That is why they are normally a decent rate,so that they know you are in effect lending them your money for 12 months.Why not just put what you already have into the best instant account and add to it with a standing order from your bank.That way you won't be penalised when you come to take it out.

12helensp

Right thanks for the help.......would I be looking for current accounts then?

McSaver

No you would be looking at online easy access internet saving accounts

ICICI offer 6.41% which is one of the leading market rates.

12helensp

Thanks McSaver. I'll check it out now.

DeepSporran

There are actually some regular savers that don't penalise you for closing early. Take a look at this excellent thread:

http://forums.moneysavingexpert.com/showthread.html?t=608697

For example, in post #4:


Skipton BS Special Saver

Interest rate: 7.3% gross p.a. variable from 21st January 2008
Monthly payment: £10-250
Miss any payments: No
Penalty-free withdrawals: No early withdrawals but can close the account early without penalty
How to open account: Branch or post
Special conditions: After 12 months transfers to an instant access account. You can open up to 3 of these accounts.

This one would allow you to put £250 in each month for 4 months and then close the account, and still get 7.3 %.

or, given that you've got £2000 at the moment, you could open 2 and put in £500 a month for 4 months.

or even, open 3, put £750 in every month for 4 months - with your £2000 existing pot and an extra £250 per month available this would be affordable I think.

Whether it's worth the trouble of going down this route is debatable though. I don't think you'll make much extra interest over 4 months - compare 7.3% with 6.41% (ICICI).

If there were a regular saver like the A&L Premier one (paying 12% - see post # 5) which allowed early withdrawal, the additional interest there might be worth the extra hassle for a 4 month period.

I'm not aware of any problem with under-18s opening these accounts.

notis7

As you are under 18 I would advise you look at childrens products - You can take advantage of the products offered for your age which will save you money and penalties!!!

There are numerous providers who offer very high rates for children and are reliable providers. Barclays,Halifax, RBS etc

jamesd

You can set up three of the Skipton BS regular savers and one of their christmas savers and deposit 250 a month into each, getting all 2,000 into the accounts quickly. Then you can drop back to the minumum of 25 per account per month, or more if you have it. You can close the accounts at any time without penalty and will get the full regular saver interest pro-rated for as long as you've had the accounts open. You'll be about 7-10 Pounds better off doing this than using the normal account only.