Christmas savings options

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Christmas savings options

• There are lots of options if you want to put
  money aside for Christmas
• This presentation is to help you find the right
  one for you

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The main ways to save for Christmas

• 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

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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

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Bank and building society savings accounts

• only works if you put in money regularly
• and arent 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

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Building society Christmasaccounts

• 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

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Credit union savings accounts

• financial cooperatives owned/controlled by
• their members
• offer savings accounts to their members
• a 'common bond', such as only admit
• members in a certain area or workplace
• option to save when and how much you want
• flexible payment options including collection
• points or local shops, or direct from wages

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Credit union savings accounts

• life assurance for members at no extra cost
• loans available to members
• generally not a wide choice of credit unions
• to join
• if it goes bust, you may be able to get
  compensation up to 50,000

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Special credit union Christmassavings 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

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Christmas clubs with local shopsand supermarket
Christmas stampschemes

• 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

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Christmas clubs with local shopsand supermarket
Christmas stampschemes

• 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

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Hamper and voucher schemes

• dont 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

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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

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Hamper and voucher schemes

• collect money from your home through a local
  agent
• dont always offer better value than the high
  street
• hampers delivered direct to your home

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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

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Post Office Christmas Club

• 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

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Think about what's important for you

• not being able to dip into your savings before
  Christmas
• being tied to a number of suppliers or free to
  buy from anywhere
• having the money collected from your home
• how safe your money is if the scheme goes bust

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Making your choice

• discuss Christmas savings schemes with
• friends or family
• find out what choices are open to you
• locally - not all options are available in
• every area
• use the OFT leaflet 'Save Xmas' to help you
• decide

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Financial Services CompensationScheme (FSCS)

• you may get compensation from the FSCS if
• a bank, building society or credit union
  fails
• the amount is limited to a 50,000
• maximum (in England, Scotland or Wales)
• you still might not get all your money back

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Further information

• The Save Xmas leaflet has the contact details
• Financial Services Authority
• www.moneymadeclear.fsa.gov.uk
• Consumer Direct 08454 04 05 06
• Association of British Credit Unions (ABCUL)
• Scottish League of Credit Unions
• Local Citizens Advice Bureau
• Local Authority Trading Standards Services

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