The Post Office has announced the launch of a new Christmas Club savings account which aims to provide customers a “secure and convenient” way to save for Christmas and avoid getting into debt.
In the wake of the Farepak disaster last year which saw thousands of families lose a year’s savings when the Christmas hamper company went bust, the Post Office has teamed up with the Bank of Ireland in order to offer a savings account which is guaranteed and governed by E-money regulations and held in a protected account.
Post Office Managing Director Alan Cook said: “We are responding to the need for a safe and convenient way for people to put money aside for Christmas. We have been working on this for many months to get the best scheme possible for our customers, to provide them with a way to save small regular amounts which ensures their cash is fully protected and looked after securely for the year until they need it at Christmas.”
Customers will be able to start saving money for Christmas 2008 at any of the 14,000 Post Office branches from January, and they will not be able to access the money until November next year, so that savers cannot be tempted to spend the Christmas money during the year. At that time, a pre-paid card will be issued which can be used at a range of retailers such as Argos, Topshop, Woolworths, and Boots.
In answer to the Farepak fiasco wherein more than 3,000 families lost an average of £400 each, the Citizens Advice Bureau has also acted to provide consumers with a safe way to save for Christmas. The Save Xmas Campaign delivers information through local groups to assist people with their savings options for Christmas using locally based face-to-face training sessions.
Learn more about Post Office Savings Accounts
© Fair Investment Company Ltd