Five top tips to save for your summer holiday

Summer -holiday 650

Last year, UK families spent an average of two months’ salary on a family holiday** and so this month may be a good time to start thinking about your own plans. By planning in advance, not only will you have something to look forward to during these cold February days, but you will also have time to save.

Follow our five tips to see if you can save money on your holiday:

1. Booking:

By thinking about your holiday now, you may be able to find a bargain. There are many destinations still available (most holidays aren’t snapped up in February – the most popular month for booking holidays is April). You can use the internet to help you make the best choice, from price comparison websites to customer reviews. If you prefer to go into a high street travel agent, you can still do your research online and, if you find a good price, take it into the travel agent with you. They may be able to match, or better it.

2. Budget:

Understand how much you will spend on your holiday. Not only for the holiday itself but for everything else you’ll need too – so include insurance, transport, entertainment, holiday clothes, food etc. This will minimise the ‘surprises’ you have on holiday and make your money go further.

3. Get saving…now!

Once you have your figure, start saving. You will be surprised how quickly your savings will grow. Generally, the longer you can leave your money in the bank, the more profit you will earn.

Al Rayan Bank offers a range of Sharia compliant instant access savings accounts so you can make a return on your savings, but still access them immediately when you want to.

Account Expected profit rate Min deposit amount
On Demand Savings 0.05%* £500 or £50 per month
Direct Savings 0.15%* £1,000
Instant Access Cash ISA 0.50%* £50

If you can wait for a little longer before you have to pay for your holiday, Al Rayan Bank also offers a range of notice savings accounts, which pay a higher rate of profit but require the customer to give advance notice before withdrawing their funds.

Account Expected profit rate Min deposit amount
60 Day Notice 1.00%* £250
120 Day Notice  1.80%* £250
120 Day Notice Cash ISA 2.00%* £250

*Gross p.a. Terms & conditions apply.

4. Holiday money

Don’t be tempted to leave your holiday money until the last minute. Instead, start looking at exchange rates up to a month before you go to make sure that you get the best deal on your money. Use the internet to find out where you can get the best foreign exchange rate. Leaving it until you get to the airport is almost always the most expensive option. However, if this happens to you, consider using the cash machine at the airport, not the Bureau de Change, as it will probably offer a better rate.

5. Be prepared

Don’t get caught out by last minute, avoidable expenses. Make sure all of your passports are in date. Ensure your bags aren’t heavier than your allowance, to avoid the extra charge. If travelling to the US, make sure you have completed your ESTA form (you won’t be able to board the plane without it), ensure you have holiday insurance and if you are travelling in Europe, get a free European Health Insurance Card (EHIC). This will allow you to access state-provided healthcare on temporary stays in other European Economic Area (EEA) countries and Switzerland at a reduced cost, or sometimes for free. You can find out more information here.

So to get the most from your summer break this year, spend a little time planning in advance to make sure your hard earned cash goes that little bit further.

** Research by Give As You Live:

You might also be interested in...