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Top tips for saving up for Christmas

Top tips for saving up for Christmas

Category: Savings

Updated: 15/11/2012
First Published: 12/11/2012

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 It is now over 6 months old so the content may be out of date.

Christmas savings schemes, designed to help stash money away in preparation for the festive season, have begun to make a comeback following the Farepak scandal six years ago.

Whilst these plans can be a useful way to squirrel away cash, a wide range of providers offer variable accounts which provide a secure home for your savings with competitive rates of return.

Almost a hundred and forty notice accounts are currently offered in the market, with notice periods ranging from seven days to six months.

Here are some quick tips on notice accounts:

Why should I have to give notice to access my money?

  • Whilst it can seem unfair having to ask to withdraw your own money, notice accounts can often reward savers more in terms of rates of return for leaving their cash untouched.

How do I know how much notice to give?

  • Notice periods vary, so it is a good idea to shop around for an account which you feel will suit your financial and lifestyle needs.
  • For example, with just over forty days to go until Christmas, an account requiring thirty days notice may be a good idea to stash extra money away.
  • Notice periods will be specified in the account's terms and conditions, along with any other accessibility details, although some deals include it in the account name.

Do I have to invest a specific amount each month?

  • Not necessarily. You can invest a set amount if you choose to, although unlike regular savings accounts which tend to have strict investment requirements, deposits of varying amounts can be made at anytime.

Are there any notice accounts that allow early access?

  • A number of notice accounts allow savers to withdraw their savings at short notice, although penalties such as loss of interest will apply.
  • Loss of interest penalties will often reflect that of the notice period.
    • For example: If you access funds on an account with a thirty day notice period, chances are you will incur a thirty day loss of interest.
  • Some accounts offer flexibility with making withdrawals, but will also have restrictions as to how many can be made within a given period. One notice free withdrawal may be allowed during the whole year, but further withdrawals will probably result in a penalty.

Do many notice rates have introductory bonuses?

  • There are a handful of accounts which include a bonus, although not as many as in the Easy Access Savings market.
  • If you are seeking an account which offers an introductory bonus, check the deal's terms and conditions and make a note as to when the bonus expires to avoid reverting to a lower rate in a few months' time.

What next?

Find the best high interest easy access savings accounts (instant access) that include an introductory bonus as part of the rate.

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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