New research has revealed that most people in the UK are putting money away for holidays, with more than half having a specific savings account to pay for their trips.

The survey from Leeds Building Society found that 55% of people have a dedicated holiday fund, and just over a third (35%) have more than one.

As the cost of living continues to bite, you might expect spending plans to be curtailed but almost three in four people (74%) anticipate spending the same or more on a holiday this year compared to last.

However, a significant proportion (35%) intend to use a credit card which highlights that not everyone is in a position to spend from their savings, and over a third are getting into debt to go away.

Top savings tips

     Leeds Building Society has produced a selection of helpful hints and tips on getting into a good savings habit for holidays and making those funds go as far as possible.

They include holiday booking hacks, savings tips and things to consider like the potential benefits of using a travel agent versus doing your own research, and booking a package trip versus shopping around for the best deals on flights, transfers and accommodation.

Other ideas include capitalising on differences in the timing of school breaks across the UK and crossing borders to book cheaper flights.

What are the best savings accounts for a holiday fund?

Most people start saving between one year or six months from their break, and on average save £257 every deposit.

The research shows that monthly is the preferred saving frequency, explaining why regular savings accounts are the favoured type of account (64%) followed by instant access (47%) and cash ISAs (36%).

Catherine Wray, Leeds Building Society’s Savings Manager, said: “It’s pleasing to see just how many people have planned ahead to save money for a holiday.

“Setting up a recurring payment to go into a regular savings account every month can be an effective way of building a healthy fund by the time you’re ready to travel.

“Anyone who wants to start saving for a holiday should consider what type of account is best for them.

“Those who like to seize the moment and take last minute trips might want to consider easy access savers so they can dip into their pot immediately.

“Those who prefer to plan ahead more are likely to be able to opt for a slightly better rate of interest but have less flexibility over withdrawals.

“Many people often ask how to open a savings account, and the simple answer is that it’s always a good idea to shop around for the top products and best cash ISA rates and find the savings product most suited to your needs.