The best holiday savings accounts

Monzo Current Account

9.3 Excellent

Monzo’s Savings Pots are cleverly designed so that you stay focused on your savings goal. They sit next to your current account, so you can see your savings progress whenever you log into the app. Alongside that, you can use Monzo’s Roundups feature, where anything you spend over £1 is rounded up to the nearest point and added to your pot, as well as set up automated savings, so money is automatically saved into your Pot each month. If it helps you to visualise your goal, you can even add a picture to your Pot and name it. With Monzo, you can set up an Instant Access Savings Pot, which pays a competitive interest rate and lets you withdraw your money instantly.

Representative example: If you use an arranged overdraft of £1,200, you'll be charged interest at 39% EAR variable.

• Pros and cons

  Pros

  • Easy to set up
  • Good for budgeting and categorising spending
  • Automatic saving feature
  • Fee-free spending abroad
  • Slick app with face login
  • Overdrafts and loans available

  Cons

  • Free ATM withdrawals outside the EEA limited to £200,
  • £1 fee for depositing cash at PayPoints,
  • Maximum cash deposit of £1,000 every 6 months
  • No rewards program

• More details

  Minimum opening balance	£0
  Switch service guarantee	Yes
  Account fees	£0
  Overseas card transactions	0%

Revolut Standard

8.9 Great

Revolut’s savings accounts are easy to set up within the app and have features to help you build towards your holiday savings goal. You can add money at any time, so if you’re feeling flush one month, you can easily transfer a little extra into your savings. Alternatively, you can set up a recurring transfer to ensure that your account is topped up without fail each month and opt to turn on round-ups to boost your balance further. The accounts pay interest on your savings, and depending on which Revolut plan you have, you can earn interest on Euros or US Dollars.

• Pros and cons

  Pros

  • Low overseas fees
  • Quick sign-up
  • Earn cashback on spending
  • Set budgets for financial goals
  • Virtual cards for online purchases
  • Easy to transfer money internationally

  Cons

  • 1% currency conversion charge on weekend spending abroad
  • Free cash withdrawals in the UK and abroad both limited to £200 per month
  • Cannot deposit cash or cheques into the account
  • Charged a fee to receive your bank card

• More details

  Minimum opening balance	£0
  Switch service guarantee	No
  Account fees	£0
  Overseas card transactions	0%

TSB Spend & Save Plus

9.8 Excellent

TSB is one of the few high street banks which also offer Savings Pots that pay interest. If you have a Spend & Save or a Spend & Save Plus account, you can open up to 5 Savings Pots. These can be named anything you like to help you keep focused on saving for your trip. Much like the digital banks, TSB also has features designed to boost your savings, like its Save the Pennies feature, which is a round-up tool. Its Savings Pots are instant access and are FSCS protected.

Representative example: If you use an arranged overdraft of £1,200, you'll be charged interest at 39.9% EAR variable. Account fee of £3 per month.

• Pros and cons

  Pros

  • £100 interest-free overdraft
  • No charges for using your debit card abroad
  • Earn £5 cashback a month
  • Savings Pots and Save the Pennies features to help you save
  • Easy to apply online or via the app

  Cons

  • A monthly fee
  • Interest paid on Savings Pots is low
  • If you exceed £100 interest-free overdraft limit, you’ll pay 39.90% EAR
  • Need to make at least 20 debit card payments a month to get cashback

• More details

  Minimum opening balance	£0
  Minimum operating balance	£0
  Switch service guarantee	Yes
  Account fees	£3 per month
  Overseas card transactions	0%