02 Jul 2015

A question about : Best Investment ideas for Ј300 a month for 6 months

I'm looking to save Ј300 a month for the next 7 months as spending money for holiday.
There's hardly any point in a savings account as the interest isn't good as I won't have the account for long enough.
So what else shall I do?
Premium bonds and then cash them out before the holiday?
Or just get another account and set up a standing order?
Or any other ideas?

Best answers:

  • Well the best account on the market for that sort of thing is the TSB classic plus, which pays 5% on balances up to Ј2000 if you pay in Ј500 each month. This can be paid in and taken straight out again so you don't have to leave it in there.
    However you'll get Ј26.25 in interest before tax over 6 months if you add Ј300 to the account each month to leave there. Whether you think it's worth it for the time it takes to open and account and set it up is up to you.
    The option of opening a naff savings account with your current provider, acknowledging the rubbish rate, would be advantageous in that you won't accidentally spend the money and it is set aside for that purpose. Depends if that might be an issue for you.
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