Published: 25 July 2024
We all save for different reasons, but our new research1 shows that most people in the UK are putting money away for holidays.
More than half of those surveyed (55%) have a dedicated savings pot ready for a getaway, and just over a third (35%) have multiple accounts building up cash to satisfy their wanderlust.
So, how can you best fill your savings suitcase to help you head somewhere blissful?
Savings solutions
Our research found lots of people are saving towards that all important getaway:
- 63% save every month towards their holiday
- 57% start saving between 6 and 12 months before their trip
- The most popular amount for monthly deposits is between £100 and £249
Make it a regular thing
Setting up a regular payment to go into a holiday savings account every month can be a great way of building up a healthy holiday fund.
The type of account depends on what’s best for you and your plans.
Easy access savings: If you’re ready to fly at any moment on a last-minute trip, an account with easy access could be a good option. That’s because you can dip into your savings straight away without having to wait.
Limited access savings: If you’d rather plan ahead, you could lock away your cash and usually get a slightly better rate of interest - with less flexibility over withdrawals. This could help you maximise the amount you save while working towards your holiday goal.
A good way to do that could be with a Cash ISA. We provide a range of Cash ISAs with different term lengths and interest rates.
Check out our savings range to find out more.
Holiday hints, hacks, and tips
- House swap
This one’s a bit out there, but it’s great way to get free accommodation, especially if you’re doing a city break. By using sites like Home Exchange2, you can swap your home for somebody else’s for an agreed amount of time.
- Package it up
If you’re heading to a traditional holiday destination for 7, 10, or 14 days, package holidays can often be the cheapest way to do it, rather than booking everything separately.
- Shop around
Booking trips yourself rather than through an agent can sometimes cost less than a package, depending on the type of trip you’re after. Although you could save money, it does take time to do research, and you won’t have the protection that comes with booking a package.
- Think about food and drink
Is that tempting all-inclusive package as good value as it seems? Or would it be better to book half board or self-catering for a cheaper option?
- Free kids' places
Many travel operators offer free kids’ places as part of holiday packages, so it’s worth keeping an eye on when these are released. They could save you some money and make an unaffordable holiday into a possibility.
- Do as the locals do
When you’re on holiday, it’s easy to stick to the beaten track and more ‘touristy’ spots, but there will no doubt be some hidden gems that are often cheaper than those found on the main strips and squares. A great way to find out about these is to ask the locals who are working there, like barmen, taxi drivers, etc. Their favourite restaurant could end up being yours too!
Manage your money with ‘50-30-20’
The United Nations Financial Credit Union (UNFCU) have created a simple way3 to split your income, which could help you save 20% of your monthly budget towards a holiday.
50% Needs: Use around half your monthly income towards those essential needs - things like groceries, energy bills, and mortgage or rental payments.
30% Wants: What we choose to buy that we might be able to go without. Could you make that weekly takeaway a monthly one? The pennies add up to pounds, so any savings you can make from your ‘wants’ could contribute towards a holiday.
20% Saving: The remainder of your budget can go towards saving towards your holiday, or other savings goals.
Of course, we understand not everyone will be able to stick to these limits, but considering where you can cut back on costs could contribute to your next holiday.
We hope you find this guide useful. Please remember it’s important to choose any savings provider carefully, and the same goes for when you book your holiday too.
This guide is intended as a summary only and does not constitute legal or financial advice given by Leeds Building Society. No reliance should be placed on this guide. We recommend that you seek independent legal advice and/or financial advice if you have any questions or queries.
Cash ISAs are available to individuals aged 18 or over who are residents in the UK for tax purposes.
1Online interviewing was carried out in June with Members and a UK nationally representative sample. 257 LBS Members were surveyed on Talking Point. 437 nationally representation sample were surveyed on Purespectrum
3Budgeting basics: The 50-30-20 rule | UNFCU
