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Making sense of savings
It may seem strange, so early into a new year, to think about next Christmas, but if you want to avoid the financial headache that the festive season often causes, it's never too soon to start saving up.
Just £5 a week put aside for the whole year means an extra £250 at Christmas.
This month we compare two popular ways to save up for Christmas.
Have a look at the features of each and then make up your own mind.
Hamper Club
- You order what you want from the hamper firm's catalogue and then make regular payments against your pre-ordered goods.
You can't change your mind later
- You don't get a return on your savings
- You're committed to pay for the goods so you must maintain your level of savings throughout the year
- If the hamper firm collapses (like Farepak did in 2006) you may lose all your Christmas savings, so ask about the level of protection before you join
Credit Union Christmas Saver Club
- You save as much as you want to regularly throughout the year, but your savings are only available to draw between 1 November and 24 December
- Your savings earn you a bonus called a dividend
- You are free to spend your savings wherever you like, such as the seasonal sales
- Your savings are fully protected by the Financial Services Compensation Scheme. Whatever happens, you can't lose them
For more Christmas saving options visit www.consumerdirect.gov.uk
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