Call for an instant quote
0345 90 80 161
Open Mon to Fri 09:00 - 17:30 | Sat 09:00 - 16:00 (GMT)
25 February 2016 08:05
Holidays get Britons saving, research shows
Dreams of holidaying in the sun get Britons saving like nothing else can, the results of a new study suggest.
More than one in four (26%) of those surveyed for Nationwide Building Society say they save up so they can go on holiday - with travel insurance potentially among the associated costs.
That makes holidays the biggest motivation for saving, ahead of Christmas (15%) and putting money away for a rainy day (15%), a new car (9%), or a deposit on a house (8%).
Popular saving tools
The survey also suggests that people's holiday funds are much likelier to be built up in current accounts than traditional savings products such as Isas.
Some 45% of those questioned say they use a current account for their savings. That compares to 25% who choose a taxable savings account for their nest egg and 34% who opt for a cash Isa.
Just 5%, meanwhile, use stocks and shares Isas to grow their savings.
The typical cash Isa is now offering an interest rate of 1.38%, financial information website Moneyfacts says.
But many current accounts offer rates that compare favourably with savings accounts, as well as offering cash-back deals.
Although Isas currently have tax advantages, f rom April 6 many people saving up for a holiday - or anything else - will have a new personal savings allowance that will mean they no longer have to pay tax on the interest they get from other accounts.
People paying tax at the basic 20% rate will be able to earn as much as £1,000 in interest on their savings without having to pay tax on it.
Higher rate taxpayers paying 40%, meanwhile, will be able to claim up to £500 tax-free. Those paying the additional 45% tax rate will not be entitled to a personal savings allowance, however.
27 September 2016
Monarch Airlines says its flights are operating as normal amid fears the firm is in financial trouble.
24 September 2016
Slim people who look physically healthy may still be at increased chance of being diagnosed with bowel cancer if they have raised insulin levels, according new research.
23 September 2016
Theresa May is being urged to give the go-ahead for flights to resume between the UK and Sharm el-Sheikh by the head of the cross-party parliamentary group on Egypt.
22 September 2016
Budget airline Jet2.com is to open its first base in the south of England at Stansted.
21 September 2016
Smoking rates have dropped to the lowest level on record in England, new figures show, suggesting messages about the health effects of cigarettes are hitting home.
20 September 2016
Concerns have been raised over flight disruptions caused by heavy drinking among passengers.
17 September 2016
British Airways' decision to launch direct flights from London to Tehran earlier this month positions Iran as one of the hottest destinations to visit in 2017, according to experts.
16 September 2016
More than 100 flights have been cancelled as French air traffic controllers go on strike again.
15 September 2016
Two thirds of MPs would support an expansion at Heathrow.
14 September 2016
TripAdvisor is launching a new homepage, making the booking of holiday activities and tours even easier.
13 September 2016
Travellers are to be charged to use fast lanes to get through passport checks in an attempt to cut queues.
09 September 2016
People travelling to regions affected by the Zika virus outbreak should practise safe sex for at least half a year upon their return, health leaders say.