Which supermarket offers the best Christmas savings scheme?

byblognet -9/09/2023 06:50:00 PM

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It may be hot outside, but December is a mere 83 days away – which means it's time to start planning your Christmas budget.

With December putting a strain on most household budgets, you might be looking for ways to start saving now - or to boost your existing pot.

Many supermarkets have Christmas saver schemes that allow you to save throughout the year when you do your weekly shopping, and be rewarded with a bonus to spend during the festive season.

Here, we take a closer look at how much you can earn through these schemes, explain the risks involved, and give advice on how to budget for Christmas.

What are Christmas Saver schemes?

Supermarket savings schemes offer a way to save throughout the year and earn a top-up from the supermarket of 4-6%.

This comes in the form of vouchers or a card combining your savings and the bonus, which can usually be spent in December, although some offer spending all year round.

How much can you save?

Here we’ve summed up how much of a bonus you’ll get depending on what you save.

We’ve listed the schemes alphabetically, and explain a bit more about how they work underneath the table.

Asda Christmas Savings Card

How it works:How much you can earn: When you get paid:Apply at: Find out more

Co-op Savings Stamps

How it works: How much can you earn:When you get paid: Apply:

Iceland Bonus Card

How it works: How much you can earnWhen you get paid: Apply at:

Sainsbury’s Christmas Club Card

How it works:How much you can earnWhen you get paid:Apply at:

Tesco Christmas Saver Scheme

How it works:How much you can earn:When you get paidApply at: Find out more

Is your money safe?

This means if one of the supermarkets went bust, you would lose your money. However, some providers do leave your money in separate ringfenced accounts. It's worth checking the terms and conditions carefully before you sign up.

In April last year the government announced reforms that will mean savings club providers will have to fully safeguard customers’ money through insurance or trust accounts.

This will prevent scandals such as Farepark, which went under in 2006, and left 100,000 customers with nothing.

What else do you need to consider?

Most vouchers or cash bonuses can only be spent with the supermarket that runs the scheme, with the exception of Sainsbury’s where the bonus can also be spent with Argos.

So if you tend to mix and match where you get your grocery shopping, a saver scheme might not be best for you.

How to make your money go further

Here are three other ways to save money before Christmas.

1. Make the most of loyalty apps

Lots of supermarkets reward customers by allowing them to build up points every time they make a purchase. These points can then be converted into money-off vouchers.

Tesco Clubcard vouchers double in value when you spend them with its reward partners, and Nectar points can also be used with around 300 other companies.

Find out more:

2. Give your savings a boost

If you've had your savings account for a long time, it's worth checking what rate you're getting.

Savings providers often offer new customers the best rates and leave loyal savers languishing on poor deals.

The recent hikes in the Bank of England base rate have helped to boost the savings market, with providers paying up to 5.92% AER on instant-access accounts.