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.
21 April 2017
Want to lower your risk of suffering cancer or heart disease? Then get on your bike.
20 April 2017
Researchers have made a significant breakthrough in understanding the way in which breast cancer grows and spreads.
19 April 2017
Budget airline easyJet has apologised over an incident in which two passengers were ordered to leave an overbooked flight.
14 April 2017
Holidays have topped the priority lists of people approaching retirement, with close to two thirds (64%) aiming to go on more trips once they leave the world of work behind.
13 April 2017
A major bank has outlined plans to become more "dementia-friendly".
12 April 2017
Restrictions should be put in place to curb the drinking of alcohol before early-morning flights, a House of Lords committee has suggested.
11 April 2017
Drivers heading to airports and ferry ports this bank holiday weekend have been told to expect heavy traffic.
People who are beginning to notice signs of grey hair have more to worry about than their image.
07 April 2017
Women who live in built-up areas could face a higher risk of developing breast cancer, according to a new report.
06 April 2017
It's well known that oily fish like mackerel is good for the heart and the brain but experts are now considering whether it can also help people with diabetes.
05 April 2017
The UK could face a "damaging" drop in flights if an aviation deal can't be sorted quickly in the Brexit negotiations, a travel trade group has warned.
04 April 2017
BBC broadcaster Victoria Derbyshire has revealed that losing her hair while undergoing chemotherapy was the "worst bit about cancer treatment".