Christmas savings options

2. 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

3. 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

4. The main ways to save for Christmas • Supermarket, retailer and shopping mall schemes • Christmas clubs with local shops • Hamper and voucher schemes • Hamper schemes from your milkman • Post Office® Christmas Club

5. 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

6. Bank and building society savings accounts • only works if you put in money regularly and aren’t 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

7. 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

8. 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

9. 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

10. 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

11. Supermarkets, shopping malls and national retailer schemes • pay in what suits you, when it suits you • what you save can only be spent at the shop or shops operating the scheme • there’s usually a bonus • check what happens if you lose or damage your saving record (booklet, stamps, card etc.)

12. Supermarkets, shopping malls and national retailer schemes • savings only as secure as the business operating the scheme • not covered by the Financial Services Compensation Scheme • could be difficult to get money back if business goes bust

13. Christmas clubs with local shops (like butchers, toy shops etc.) • pay in what suits you, when it suits you • what you save can only be spent at the shop operating the scheme • some schemes pay a bonus • check what happens if you lose or damage your saving record (booklet, stamps, card etc.)

14. Christmas clubs with local shops (like butchers, toy shops etc.) • 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

15. Hamper and voucher schemes • collect money from your home through a local agent • don’t always offer better value than the high street • hampers delivered direct to your home

16. Hamper and voucher schemes • don’t 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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