Money Advice Extra
Christmas savings
options
The main ways to save (for Xmas)
• Banks and building society savings accounts
• Building society Christmas accounts
• Credit union savings accounts
• Credit union Christmas savings accounts
• Christmas clubs with local shops
• Hamper and voucher schemes
• Hamper schemes from your milkman
• Post Office® Christmas Club
A closer look at the pros and cons of
ways to save ……………..
Bank and building society savings accounts
• lots of branches on the high street
• wide variety of account types available
• usually you can save as much and as often as
you want
• you are paid interest on savings
• only works if you put in money regularly
and aren’t tempted to dip in
• account opening process takes time
• need to go to a building society to pay in
• if it goes bust, you may be able to get
compensation up to £50,000
Building society Christmas accounts
• you are paid interest or a bonus ……unless you
take your money out early
• need to go to a building society to pay in
• may not be offered by your local building
society
• if it goes bust, you may be able to get
compensation up to £50,000
To arrange a Save Xmas workshop or briefing for staff or service users,
contact Dean Stockwell (Advice Link Money Advice Team) on 476843
Or email advicelink@blackpool.gov.uk
Money Advice Extra December 2008
The pros and cons continued ……
Credit union savings accounts
• financial cooperatives owned/controlled by
their members
• offer savings accounts to their members
• option to save when and how much you want
• flexible payment options including collection
points or local shops, or direct from wages
• life assurance for members at no extra cost
• loans available to members
• if it goes bust, you may be able to get
compensation up to £50,000
Special credit union Christmas savings
accounts
• operate in a similar way to standard credit
union accounts
• discourages withdrawing money early
• some pay out in vouchers instead of cash
• if it goes bust, you may be able to get
compensation up to £50,000
Christmas clubs with local shops and
supermarket Christmas stamp schemes
• pay in what suits you, when it suits you
• what you save can only be spent at the shop
operating the scheme
• some schemes, especially large
supermarkets, offer a bonus
• savings only as secure as the shop
operating the scheme
• not covered by the Financial Services
Compensation Scheme
• could be difficult to get money back if shop
goes bust
Save Xmas Briefing Page 1
Continued……
Hamper and voucher schemes
• don’t offer interest, but do offer a bonus or
special offers
• some schemes have joined the Christmas
Prepayments Association and have
arrangements to protect your money – check
the level of cover
Hamper schemes from your milkman
• difficult to dip into savings before Christmas
• not covered by the Financial Services
Compensation Scheme
• savings can usually only be spent with the
scheme provider
• goods bought not always as good value as
those bought on the high street
• hampers delivered direct to your home
Hamper and voucher schemes
• collect money from your home through a local
agent
• don’t always offer better value than the high
street
• hampers delivered direct to your home
Post Office® Christmas Club
• you load cash onto a card (like a pre-paid
credit card) at any Post Office® branch
• you decide how often and how much to save
up to £1000
• difficult to dip into savings before Christmas
• not covered by the Financial Services
Compensation Scheme
• from November you can use the card like a
debit card or convert to vouchers
• vouchers are with participating retailers only
Check out the Save Xmas
savings comparison chart at:
www.consumerdirect.gov.uk/before
_you_buy/money_and_credit/xmas/
comparisonchart
Money Advice Extra December 2008
Further information and
support
Financial Services Authority
www.moneymadeclear.fsa.gov.uk
Consumer Direct 08454 04 05 06
www.consumerdirect.gov.uk/before_you_
buy/money_and_credit/xmas/xmasindex
Blackpool Citizens Advice Bureau
Independent, impartial, confidential and
free advice and information
6 – 10 Whitegate Drive
Blackpool, FY3 9AQ
Telephone advice line: 01253 308400
Fax: 01253 308420
Email: advice@blackpoolcab.org.uk
Website: www.blackpoolcab.org.uk
Consumer Credit Counselling Services
(CCCS)
Free, impartial, independent advice and
assistance. No-fee debt management
plans.
Monday – Friday 8.00am to 8.00pm
Telephone: 0800 138 1111
Website: www.cccs.co.uk
National Debtline
Free, independent, confidential telephone
advice
Monday – Friday 9am to 9pm
Saturday 9.30am – 1.00pm
Telephone: 0808 808 4000
Website: www.nationaldebtline.co.uk
Save Xmas Briefing Page 2