The Summer Holiday Opportunity
Summer is the perfect time to boost your holiday fund. With most of us taking time off in August, now's the moment to top up your travel budget through smart banking moves — no extra work required.
Banks are currently offering up to £1500 switch bonuses, 0% credit cards can earn you interest, and regular savers accounts give you guaranteed returns. Combined, you could realistically add £500–£2000 to your holiday fund before you pack your bags.
This guide shows you exactly how to stack these strategies in July, so your money is earning for you whilst you're relaxing on the beach.
Strategy 1: Bank Switch Bonuses — The Quickest Win
If you haven't switched banks recently, there's easy money on the table right now.
Current best offers (July 2020)
The market is unusually competitive this summer:
- TSB & Nationwide: £1500 switch bonus (via BCWYC)
- Virgin Money: £1000 switch bonus (via BCWYC)
- RBS & NatWest: £175 switch bonus (via BCWYC)
- HSBC: £150 switch bonus (via BCWYC)
- Halifax & Lloyds: £125 switch bonus (via BCWYC)
- First Direct: £100 switch bonus (via BCWYC)
The top offers require you to set up a direct debit guide or two, but if you're already paying bills, you can satisfy this requirement cheaply. We've got a complete guide to cheap direct debits that shows you how to get rolling.
Why timing matters for holidays
Here's the crucial bit: switches take 7 working days under the Current Account Switch Service (CASS). If you switch today (26 July), your money arrives by 5 August. The bonus lands within days after that — well before holiday season peaks.
To qualify, you typically need to:
- Switch your main account via CASS
- Pay in a salary or benefit (or set up a standing order if self-employed)
- Arrange a direct debit or two
Use our switching guide for the exact steps. It'll walk you through everything.
Real money in the bank
Think about it practically:
- One switch to TSB: £1500 bonus = one week's holiday fund sorted
- Two switches over 12 weeks: £3000+ = a serious holiday boost
- Stacking with your partner's account: Double that
Summer gives you breathing room. Even a single switch by mid-August adds meaningful money to your travel budget.
Strategy 2: Stoozing — Make Your Spending Work Harder
Stoozing sounds fancy, but it's straightforward: put holiday spending on a 0% credit card, keep your actual cash earning interest, and pocket the difference.
Why it matters for your trip
You're going to spend on your holiday anyway — flights, accommodation, meals, activities. With stoozing, you put those purchases on a 0% card, leave your cash in a savings account earning interest, and let the interest earn for you.
Here's a concrete example:
You're spending £1500 on flights and hotels.
- Put this on a 0% credit card (go for 20+ months interest-free)
- Keep £1500 in a high-interest savings account (around 1–1.2% currently)
- Earn roughly £150–£200 in interest over 20 months
- Pay off the card before interest starts
- Pocket the interest earned — free holiday money
You're not creating debt; you're just using an interest-free period sensibly. It's particularly valuable for big holiday expenses.
How to do it safely
- Apply for a 0% credit card offering 20+ months interest-free
- Put your holiday purchases on it
- Keep your cash in the best savings account you can find — check our live offers
- Set a phone reminder 30 days before 0% ends — this is crucial
- Pay the card off before interest kicks in
- Withdraw your interest earnings
The golden rule: you must pay this off before the 0% period ends. If you don't, interest rates jump to 15%+ and undo all your gains.
Strategy 3: Regular Saver Accounts — Guaranteed Returns
If you prefer something bulletproof with zero risk, regular saver accounts are brilliant for holiday funds.
Regular savers let you deposit a fixed amount each month (typically £50–£300) and earn a guaranteed rate. Current rates sit around 4–5%, which might not sound thrilling, but it's reliable and effortless.
Why July is ideal
This time of year is perfect for regular savers:
- You might have bonus season earnings or extra hours to feed in
- You've got 5–6 weeks to build up the fund before traveling
- If the rate is 5%, depositing £200/month earns you roughly £10–£15 in pure interest
It's not a fortune, but it's guaranteed, requires zero effort once set up, and there's no risk whatsoever.
Check current regular saver offers to find the best rates available right now.
Putting It All Together — A Real Holiday Plan
Let's make this concrete with an example.
Your situation: You want to add £1500 to your holiday fund by 1 September. You have £500 to work with now, and earn £300/month for the next two months.
Your action plan:
Week 1 (Now — 26 July): Switch your main current account. Apply to TSB or Nationwide for the £1500 bonus. Done. That's your foundation.
Week 2: Open a regular saver with one of the best rates. Set up a £300/month deposit starting on your next payday.
Week 3: Put your next paycheck's £300 on a 0% credit card. Keep the money in a savings account. Set a calendar reminder for the card payoff date.
By 1 September:
- Bank switch bonus: £1500
- Regular saver deposits (£600 + interest): ~£615
- 0% card interest earnings: ~£25
- Total added to your holiday fund: ~£2140
Zero extra work. Just smart timing.
Cooling-Off Periods — Don't Let Them Slow You Down
When you switch banks, there's a mandatory 14-day cooling-off checker period. This is legal protection so you can change your mind.
Here's the smart angle: start your switch immediately. The 14 days count whilst you're thinking about it. By the time the cooling-off period ends, the switch completes and you're already earning. It's not a delay — it's built into the timeline.
For a deeper look at how cooling-off periods actually work and how to plan around them, read our guide on cooling-off periods between switches.
Already Switched Recently?
If you've switched banks in the last 12 months, you probably won't qualify for a current account bonus right now. But you've still got options:
- Stooze anyway: Get a 0% card and earn interest on your savings
- Open a regular saver: No switching required; these are standalone accounts
- Switch your partner's account: If they haven't switched, they're eligible for the full bonus
- Check what you qualify for: Use our eligibility checker to see exactly what's available to you
Common Questions
Can I switch banks if I'm traveling in August?
Yes, completely. The switch takes 7 working days under CASS, and the bonus lands within 7–14 days after that. You'll have everything by early August. Request your switch by mid-July to be safe, and you'll be done well before you leave.
Is stoozing actually legal?
Completely legal. You're using a credit card's interest-free period (which banks offer willingly) and putting money in a savings account. Millions of people do this. The only obligation is paying the card off before interest kicks in.
Do bank bonuses count as income for tax purposes?
In the vast majority of cases, no. Bonus payments aren't classed as interest or income. However, any interest you earn from savings (including stoozing interest) does count towards your personal savings allowance, and you must declare it if you're a higher-rate taxpayer. Check your tax situation if you're earning significant interest.
Can my whole family stooze together?
Yes, but everyone needs to understand the plan and commit to paying the card off on time. It's only worth doing if everyone involved is disciplined. If one person forgets and the card goes into interest, it ruins the whole strategy.
What happens if my bank switch fails?
Switches very rarely fail, but if they do, your bank will contact you to sort it — usually something simple like a missing direct debit. The key is starting your switch early in July so you've got time to fix anything if needed.