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Christmas failing to spur savers into action

Christmas failing to spur savers into action

Category: Savings

Updated: 05/11/2010
First Published: 05/11/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

With just seven weeks to go until Christmas, research from NS&I has revealed that people are feeling pessimistic about their ability to save money before the end of the year.

According to NS&I's Savings Survey data, more than a quarter of Britons feel they are less likely to save in the autumn months.

Around one in ten said they were much less likely to put money aside as the festive season approaches.

Women were especially concerned that they will not be able to set money aside, with nearly a third thinking they were less likely, compared to just a quarter of men.

On average, as people get older they think they are less likely to save in the coming months.

Savings accounts such as Barnsley Building Society's Online Saver and Tesco Bank's Internet Saver are ideal for stashing away the cash in the short term.

Barnsley's Online Saver account pays a rate of 2.50% gross pa/AER variable and can be opened with as little as £1.

Withdrawals can be made at any time as long as a minimum balance of £1 is left in tact.

Tesco Bank's Internet Saver pays 2.60% Gross/AER (variable) for new customers, which includes a fixed bonus of 1.35% for the first 12 months.

It allows instant access to your savings without notice or penalty.

"It's daunting to think that there are just two months to go until Christmas," said Tim Mack, NS&I savings spokesman.

"However, it is best to try not to pay for everything out of December's pay packet and instead to plan early, agree the priorities for a good festive season and spread the financial outgoings over a longer period.

"Nearly a third of the population confessed that they overspent on a monthly basis.

"Trying to rein this in a bit and save a few extra pounds in the coming months, or starting the Christmas preparations now, could help the festive celebrations be more financially manageable this year."

*Product and rate information and availability is correct as of the date of publication (shown at the top of the article). Products may be withdrawn by their provider or changed at anytime.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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