{"id":370022,"date":"2019-04-02T17:52:18","date_gmt":"2019-04-02T21:52:18","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?p=370022"},"modified":"2025-02-26T13:25:14","modified_gmt":"2025-02-26T13:25:14","slug":"compare-christmas-savings-account","status":"publish","type":"post","link":"https:\/\/www.finder.com\/uk\/savings-accounts\/compare-christmas-savings-account","title":{"rendered":"Five ways to save for Christmas"},"content":{"rendered":"

No matter how far away Christmas may be, saving up for the festive period can help you prepare for what\u2019s an often-expensive time. It\u2019s also much better for your finances than relying on interest-accruing credit cards to buy presents. Here\u2019s our guide to the best ways to save for Christmas.<\/p>

1. Regular savings account<\/h3>

Putting money into a regular savings account<\/a> is a great way to set aside money and earn a bit of interest for your Christmas spending.<\/p>

You\u2019ll need to pay cash into your account each month for a set period of time and usually won\u2019t be allowed to withdraw any of the funds during that time (although some providers might let you make a very limited number of withdrawals). If you find it difficult to leave your money alone, you\u2019ll like that access isn\u2019t easy before the term is up.<\/p>

Many banks offer one-year regular savings accounts, so if you plan ahead and open one in early to mid-December then you\u2019ll be able to access all the money that has accrued over the year just in time for the following Christmas.<\/p>

2. High-interest savings account<\/h3>

If you don\u2019t need a penalty to motivate you to keep your hands off your savings, you could open a high-interest savings account just to save for Christmas. You\u2019ll earn a higher APR, plus you\u2019ll be able to withdraw funds at any time throughout the year.<\/p>

Just be aware that some high-interest savings accounts only pay interest if your balance is above a certain threshold. Know that amount and monitor your balance so that your money is always earning interest.<\/p>

3. Savings with sub-accounts<\/h3>

If you don\u2019t like the idea of having to manage multiple savings accounts, look for one that offers sub-accounts. They\u2019re particularly useful if you want to save money towards a goal \u2013 like Christmas \u2013 as you can just move money there whenever you like.<\/p>

Some of the challenger banks<\/a> let you split your money into different savings buckets (like digital piggy banks), so you can track and manage multiple savings goals all in one place.<\/p>

For example, Starling Bank\u2019s<\/a> Spaces feature lets you set up different Spaces for different purposes. You can set a target amount to save and squirrel cash away either manually or automatically, encouraging you to save more. However, as of February 2025, you\u2019ll no longer earn interest on whatever you put away in your Spaces. Instead, you can open an easy access savings account with Starling to earn interest. <\/p>

Monzo\u2019s<\/a> Pots feature lets you organise your money for different purposes and transfer money in and out instantly. You can create up to 20 different Pots, set goals and even lock or hide your Pots if you\u2019re tempted to dip into one too soon. You\u2019ll also be able to choose from different types of savings pots that pay interest on your cash.<\/p>

4. Round-up savings<\/h3>

Many banks now offer automated savings<\/a> features, where you can round up your daily transactions to the nearest \u00a31, and send that loose change directly to your savings account.<\/p>

For example, if you used your debit card to buy a book for \u00a37.50, it would round-up the value to an even \u00a38 and send the extra 50p to your savings account. Or you could choose to have your transactions rounded up to the nearest \u00a35 amount, which in this case would round the purchase up to \u00a310 and put the extra \u00a32.50 into your savings.<\/p>

It might seem like a small amount, but make a few purchases a day and this could add up to a lot of money in time for Christmas. Plus, if the extra change from your transactions are being added to a high-interest savings account, you\u2019ll also earn interest on that money.<\/p>

There are also round-up apps, like Chip<\/a>. Download Chip, connect it to your current account and, using artificial intelligence, it will work out how much you can afford to save. It then moves small amounts of money from your current account into a Chip account at regular intervals of your choice.<\/span><\/p>

5. Set a Christmas budget<\/h3>

Decide how much you want to save for Christmas each month to and write it into your budget \u2013 or have it transferred directly to your savings account as soon as you\u2019ve been paid.<\/p>

Having a proper budget in place has many advantages:<\/p>