Saving For Christmas 2007 Is Not As Mad As It Sounds - Savings - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Saving For Christmas 2007 Is Not As Mad As It Sounds

Saving For Christmas 2007 Is Not As Mad As It Sounds

Category: Savings

Updated: 31/10/2008
First Published: 04/12/2006

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 It is now over 6 months old so the content may be out of date.

I'm pretty sure that Christmas 2007 is the last thing on your mind at the moment, but like most people at this time of year, I bet that you wished you'd put a bit more money aside to cover the ever-increasing cost of the festive season.

On average we each spend around £600 at Christmas time on presents and festivities, so why not start saving as early as possible and save yourself from another financial headache in 12 months' time.

If you sign up now for a savings account, you will build up your Christmas nest egg and at the same time be comfortable in the knowledge that not only will you be earning interest on your savings, but also there is the security and protection offered by your bank which cannot always be found within other Christmas saving schemes, as we sadly saw this year with the collapse of Farepak.

Although it may seem a little early to start thinking about Christmas 2007, most regular savings accounts are fixed for a 12-month period, so by starting now you can ensure your savings will mature just in time to start your 2007 shopping spree.

In general, regular saving accounts allow you to invest anything between £10 and £5,000 per month, with rates of at least 6% easily found, ranging as high as 8.25% or up to 10% if you choose to hold your current account with the same provider. Most of these accounts require between 11 and 12 monthly payments and around two thirds allow limited withdrawals. 

If you were to save £600 in a regular saver account, at the end of the year you could have earned an extra £25*  in interest – enough to buy that extra Christmas present, treat, or pay towards a new party outfit.

* Based on an interest rate of 7.5%

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 Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Just 44 savings accounts beat inflation

Inflation recorded another large jump during December, and predictably, this has had a devastating impact on the number of savings accounts that beat it, so much so that you’ll need to lock your money away if you want an inflation-beating return.

Just 47% have money in a savings account

We’re often told of the importance of saving, yet unfortunately, the message doesn’t always get through. Indeed, research shows that just 47% of those surveyed have money in a savings account, and 17% have no savings or investment whatsoever.

How much will you save this year?

Many of us have set savings goals for the year ahead, and planning to budget better and save more will be at the top of many financial resolution lists. But how much are you hoping to squirrel away? Encouragingly, many people have impressive targets.