Open A Savings Account To Get One Step Closer To A Dream Holiday

If you think about it, when was the last time you had a proper holiday where you were able to relax and spend some quality time with your family? These days, when most of us think about holidays we think of those cheap deals where you basically get what you pay for. When you pay peanuts you can hardly expect peace and quiet set in exclusive surroundings.

With more of us working longer hours and some even working up to 12 hours a day at times, making time to spend with family and close friends is now more important than ever. Why jeopardise something as precious as quality time off work by booking a cheap and over-subscribed budget holiday, when with a little extra money you could get a holiday where your memories will last a lifetime?

When thinking about what high interest savings accounts are used for, most people will consider saving for a deposit on a first home or starting a new business. There is no reason, though, why savings cannot be used for something different like going on holiday to Australia or paying for an extension on the house. The main point is savings should be used for whatever the saver feels is best for them at that point in their life. If they are not getting a lot from their savings account and the housing market is still in turmoil, why not rent for another few years and take that holiday of a lifetime now while you still can?

In the middle of what has often been described as the worst period of economic turmoil in history, it is clear to see savings rates are not what they used to be a few years ago - but do not let that put you off saving for a holiday or something equally as valuable. The best savings accounts types to get a higher interest and return on investment are fixed rate ISAs. The reason these offer a higher interest rate is because the saver will agree a fixed rate with the bank in which they will keep their money in the ISA. Quite often there will be a fee attached to making any cash withdrawals, so this usually acts as a deterrent to savers who will usually keep their money invested in the bank until the end of the agreed timeframe.

The reason this type of ISA account would work well to help someone save for a dream holiday is because there is a timeframe involved. Unless you have just won some money on the lottery or secured a cash prize, it is unlikely you and your family would be able to afford flights and accommodation to Australia for quite some time. By giving yourself a year or two to save up using an account of this type, not only will you earn added interest on your investment, you will also have something exciting to look forward to when the holiday finally comes around.

This type of saving would be suitable for almost anyone planning a big holiday - from the family looking to spend a month exploring Australia's coastlines to the gap year student on a worldwide adventure. The only problem with this type of ISA, though, is that if you suddenly are confronted by a financial emergency such as a large and unexpected bill, you will more than likely have to pay a fee to get your money out of the account. There is also the chance you may lose any interest that may already have accumulated on the account - then, you would just be back to square one. If you feel you would like the added security and knowledge that you could access your savings at any time, it may be better to open an easy access ISA that does exactly what it says on the tin - provides you with easy access to your money whenever you need it.

Alongside having an ISA or other type of savings scheme, there are some other ways you could save money to go on holiday:

• Cut down on the grocery bill by buying more supermarket own brands wherever possible.
• Only use your credit card in extreme emergencies and not just to treat yourself a few weeks before payday comes round again.
• Change the way you socialise with friends and family. Instead of going out to pubs and restaurants, why not invite everyone around to yours for drinks and nibbles once every few weeks?
• Shop for clothes and shoes in discount stores, second hand shops and websites such as eBay.
• Compare energy providers and switch to another provider if you are offered a better electricity or gas tariff.
• Give yourself enough time to save and plan your perfect getaway. That way, your finances will not be squeezed as tightly and you will not need to put away as much money each month - as would be the case if your trip was only a few months away. You can also take advantage of higher interest rates if you are planning on keeping your money invested with the bank for a little bit longer.