Savers still have time to save for Christmas – and pocket a few extra quid too

• Households spend on average about £700 more in December, which is 29% more than in a typical month, according to the Bank of England.
• This figure could grow to £730 if inflation hits 4% as forecast.
• Households that tuck away £180 per month have enough time to save enough to cover the average Christmas outlay. If they save into one of the best easy access accounts that pays monthly interest, they can earn an extra £7.50 too.

Caitlyn Eastell, Spokesperson at Moneyfactscompare.co.uk, said:

“With the summer holidays ending, all eyes have turned towards Christmas. However, with persistent cost of living pressures and high inflation, consumers may already be stretching their cash to its limit.

“It is not too late to start saving. Easy access savings accounts pay up to 5% AER on deposits as small as £1 and offer monthly interest payments to give that boost many will be looking for around this time of year.

“If savers can put away as little as £25 each month, they will have £100 in reserve by the time the holidays roll around, which can help contribute to a Christmas dinner or on splashing out on a few extra gifts. Those with more wiggle room could earn even more by making larger deposits; households that tuck away £180 in one of the best monthly interest accounts have enough time to build a big enough fund to cover the average Christmas outlay of just over £700. If they save into one of the best easy access accounts that pays monthly interest, they can earn an extra £7.50 too. However, as is the case with any savings account, they must read the terms carefully.”