• Posted 5th November 2015

Best Ways to Save for Christmas

With Christmas being just more than a month away, it might be little too late for you to save for this year’s festive season. However, here is a list of ways which you can carry out to save for next year. Christmas Clubs Christmas clubs are considered one of the popular ways to save for Christmas. In this type of savings scheme, you should start saving early in the year and pay a regular amount each month then on. As you will get access to this money until a few weeks before Christmas, you won’t be able to splurge on your temptations that only make your savings safe. On the other hand, you won’t be able to use this money for any emergency situation. Additionally, you do not get any interest and will only get whatever you have paid. Another important thing to remember about Christmas Clubs is you will not be protected by the Financial Services Compensation Scheme. This means if your Christmas savings provider goes bust, you will not get any money. However, the Christmas Prepayment Association (CPA) has developed a code of conduct to protect their customers. So, you need to choose a one that is a member of CPA in order to protect your savings. Supermarket saving schemes This type of saving schemes is offered by many supermarkets. You are given a saver card through which you can add money whenever you visit the market. While some stores also offer bonuses if your card’s balance tops above certain determined thresholds. Some bonuses can be better compared to the interest provided by any other savings accounts. The downfall of this saving option is you can only spend your money in the store you have been saving with. Bank and building society saving accounts Saving in a bank or building society savings account allows you to earn interest on your savings. Unlike Christmas Clubs, your money is protected by the Financial Services Compensation Scheme in such savings accounts . Most banks and building societies offer instant savings accounts and other regular accounts. If you choose to open instant savings accounts, you will have access to your money any time. In case if you open regular accounts, you can get better interest than any other accounts, but you will have to lock away your money for and pay a certain fixed amount each month. This is why you should be some research and choose a one that works for your Christmas savings. Cash ISAs Cash ISAs are also worth considering for savings because you do not have to pay tax on the money earned from an ISA. Even though there is a limit to put money in this account in tax year running from April to April, you can still be able to cover the cost for the Christmas. With fixed and instant access savings accounts available in the market, choose an account that allows you access to your money at any time without paying a fine. If you want to cover the cost of next year’s Christmas and be debt-free the following New Year, consider any all of these options and choose that suits you.