Page 3

Saving for a wintersports holiday

If you dream of hitting the slopes in Chamonix or Calgary for a couple of weeks, then you are probably going to have to save up a bit of money first. On the whole, winter sports holidays are not cheap, and even though there are some great deals out there, they are still expensive when compared to cheap and cheerful beach holidays. You could, of course, borrow some or all of the money that you need, but if you do this, you will end up paying a lot more for your holiday than if you had saved the money first, due to the added cost of interest payments. Conversely, if you were to save the money in a savings account, you would benefit from the interest added to your account, making the holiday even cheaper overall.

There are several types of savings account available. By far the best rates are available from Cash ISA accounts, which come in many different forms, and are essentially similar to other types of savings account, except that you do not have to pay any capital gains tax on the interest. This means that you will earn more with this type of account than you would with the equivalent non-ISA savings account. However, there are a few strings attached, in that you can only deposit up to £5,100 per tax year (April 1 – March 31), and if you have put in £5,100 already, but make withdrawals from the account, you cannot top up the balance until the next financial year.

You can choose a savings account with a variable interest rate, or a fixed rate. Generally speaking, fixed rate accounts pay a lower starting rate of interest than variable rate accounts, but this rate is guaranteed not to change, so if interest rates were to fall, you would be better off. However, if interest rates were to stay the same or rise, then you would be better off with a variable rate account.

Most high-interest savings accounts come with some restrictions, such as minimum monthly deposits or mandatory notice periods for cash withdrawals. Before committing to a certain account, you should make sure that it is suited to your saving needs and your financial situation, as if you are unable to keep your end of the bargain for whatever reason, you will usually have to forfeit the interest and/or bonuses on your account for a certain period of time. Visit the Santander website for information on savings.
back
Copyright snow-kit.com 2010 . Powered by Zen Cart
snow forecast