Amid the increasing festive activity, some will inevitably be counting the costs – so how can we make the most of savings accounts to help ease some of the financial strain on our wallets.
While not the answer for everyone, most people will be able to put at least some money aside and by spreading those payments over 12 months, the financial burden does not all come at once and can make all the difference.
Which, of course, allows you to concentrate on those things that this time of year is all about – family and fun!
And this principle can be applied to any major purchase or expense – be it a car, a big holiday or even a milestone birthday celebration. By saving up in advance of a big purchase, you could avoid a costly and damaging credit card or loan expense.
So, if you want to put money aside over the course of the year and want to spread the cost of the holiday season, the best place to start is our Regular Savings Accounts Best Buy Table.
>> Find out more about the top-paying regular savings accounts
If you are looking to save a regular amount each month, you can do this with a standard account or you can take advantage of a regular savings account, which often pay significantly better rates of interest.
However, it is important to be aware that there are usually extra terms and conditions to be followed, in the form of restricted access and the requirement to pay a regular amount every month for a fixed period, normally 12 months.
These terms and conditions will vary between accounts, for example; sometimes you only need to make 11 out of 12 payments for the year, with some accounts you can vary the amount you save - while with others the amount must be the same - and occasionally a limited number of withdrawals may be allowed.
At the present time, many of the top-paying accounts are only available to those who hold a current account with the same provider.
Although this means that, in some cases, you will be able to combine this with an interest-paying current account for even better returns. A key example of this strategy is currently available from Nationwide – combining its FlexDirect current account, which pays 5% AER on balances up to £2,500, and its Flex Regular Online Saver – also paying 5% gross/AER, on monthly payments of up to £250.
There are also regular savings accounts that can only be opened in branch, so are only suitable for those local to the provider. The top-paying branch-based account currently available is from Saffron Building Society, paying 3.50% gross/AER. Good news if you live near to - or are prepared to travel to – one of the branches, which can be found in Hertfordshire, Essex and Suffolk.
As these accounts aren’t necessarily suitable for every saver, our best buy table always includes at least one account that can be opened without needing a provider’s current account and that doesn’t have to be opened in branch, to cater for all.
Currently performing this role in our top five selection is Yorkshire Building Society, which is paying 2.50% gross/AER on its Monthly Regular Saver Issue 2 – an account available to all, which can be opened in branch or by post.
Of course, another option for Christmas 2019 is to put a lump sum aside now for next year or to use the interest on your savings to pay for some or all of the festive treats.
Either way, you will need to look for the best possible rate to boost that Christmas fund – either tying your money up for a year or retaining easy access to your funds, but with a top rate. This is particularly pertinent if your funds are currently languishing in a poor-paying account.
>> Consult our independent best buy tables for the current top rates
So, there are effective ways to make the most of your savings to help with the cost of Christmas 2019 – either improving the interest you are earning or spreading the cost over the year with a regular savings account.
If you need any further help with finding the accounts that are most suitable for your needs, please call us on 0800 011 9705 to speak to one of our expert savings specialists.
You might also like...
@savingschampion
Find us on Facebook