Yorkshire Building Society has launched a new version of its popular regular savings account to help people save for their Christmas spending.
The Christmas Regular Saver pays a 5% interest rate, and people can invest up to £150 into the account per month.
Harry Walker, senior savings manager at Yorkshire Building Society, said: “Our new Christmas Regular Saver encourages people to save money and help to spread the cost of Christmas.
“For those new to saving, using the regular saver will give shoppers a healthy sum to draw on for Christmas 2025 without having to rely on credit.”
He added: “For some people, it may also show that saving regularly can be achievable, and if the habit is maintained after Christmas, a healthy savings pot can be built.”
Savers can access their accounts on one day of the year without penalty or can close them if necessary. Accounts can be opened in branches, agencies, or online.
The deal launches following recent research released by the mutual showing people planned to spend an average of £774 in 2024 to cover the cost of Christmas.
Over half (51%) of respondents said they would spend up to £1,000 on gifts, food, decorations, and entertainment. Meanwhile, almost a fifth (18%) said they would rely on some form of borrowing to cover the cost of Christmas.
Over a third (36%) said it would take them at least a year to pay the amount borrowed back.
Mr Walker said: “With our recent data showing such large amounts are held in accounts paying 1% or less, the start of a new year provides the perfect opportunity to take a close look at your finances and see how you could make small changes that add up to much bigger returns. It doesn’t matter how you choose to go about it; making just one positive change to your finances could make a big difference in the long term.”
He added: “The Christmas Regular saver has proved popular in the past years, with last year’s account supporting over 20,000 savers to put away an average balance of £1,070 towards the cost of their 2024 Christmas spending.
“We’re really proud to offer this popular account again this year, which encourages saving little and often and offers a competitive return.”
Savers can accumulate £1,500 overall, and with the current Annual Equivalent Rate (AER) of 5%, the total pot is estimated to grow to £1,534.23 upon maturity.
The Christmas regular saver matures on October 31, 2025, allowing access to the funds in time for Christmas spending and popular shopping events like the Black Friday sales.
