Daily Mail

Top rates if you start saving NOW for Xmas 2022

- By Sylvia Morris sy.morris@dailymail.co.uk

CHRISTMAS 2022 might seem an impossibly long way off — but it’s not too soon to start saving.

Banks have launched a host of regular savings accounts paying top rates of up to 5 pc to help customers fund the festive season next year.

You can usually save between £10 and £1,000 a month for a year, with the account maturing in time to do your Christmas shopping. Many savers may choose to drip-feed in cash from other easy-access accounts, where there is some £967 billion stashed away. Yorkshire Building Society’s Christmas Regular Saver pays 1pc for 12 months on savings between £10 and £300 a month.

You can withdraw money only on the anniversar­y of opening the account but can close it any time.

The rate is variable so could even go up when interest rates rise. NatWest and Royal Bank of Scotland offers a Digital Regular Saver to current account holders paying 3.04 pc on deposits of between £1 and £50 a month.

TSB has just upped its Monthly Saver rate to 2pc for current account holders saving between £25 and £125 a month. All three let you take money out at any time.

Nationwide’s new Flex Regular Saver, on offer for a limited period, pays 2 pc to

those who have a current account with the building society. You can put in up to £200 a month, and can make three withdrawal­s during the 12-month term. Any more and the rate drops to 0.35 pc.

Savers who have been members with Cambridge Building Society for at least three years can earn a fixed 5 pc with its Extra Reward Regular Saver on up to £250 a month.

It pays a lower 3pc if you have been a member for only one year.

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