SYLVIA MORRIS: My savings trick could help you pay your credit card bills for NEXT Christmas
Setting up a regular savings plan should be high on the list of your New Year’s financial resolutions.
Make it even more exciting by taking my ‘Monthly 10’ pledge, or even more drastic: the no-spend challenge.
Start by saving $10 in the first month and then increase by $10 per month – $20 in the second month, $30 in the third, and so on. By the end of the year you will end up with €780 plus €20 interest if you pay a fixed interest rate of 7 pct. chooses.
Get started today and you could have money in time to pay your Christmas credit card bill this time next year.
The no-spending challenge means that all non-essential spending will be cut in January. Make a list of essential expenses like groceries, utilities and mortgage for the month – and put everything else off limits. You might save hundreds more than you originally thought, and you’ll gain a clear understanding of how much we waste on non-essentials.
Start by saving $10 in the first month and then increase by $10 per month – $20 in the second month, $30 in the third, and so on. By the end of the year you will get €780 plus €20 interest if you pay a fixed rate of 7pc. chooses
When choosing an account, pay attention to how long the plan lasts, whether it has a fixed or variable interest rate, whether you can change the monthly deposit amount and whether you can access the money during the year. They come with a host of strict terms and conditions and no two are the same.
The rates are often fixed, so if the interest rate falls this year as expected, you will not be affected. It is not always clear whether a rate is fixed or variable, but this is stated in the overview box that all providers must have.
Start with your checking account provider – some reserve their best rates for those who put money aside every month. They usually last for a year and set a maximum you can save each month.
Whether you earn 6 percent or the top 7 percent makes little difference. At 7 pc. saving £100 a month will give you £1,245 after a year, including £45 interest. 6 pieces will set you back £1,239.
The Principality’s regular saver for one year of Christmas 2025 is a maximum of £125 per month. The First Direct Regular Saver costs between £25 and £300 per month and Skipton BS Member Regular Saver is up to £250 per month. Everyone pays 7 pcs.
Principality is open to everyone, while First Direct is only available to First current account holders and Skipton to its members who have joined since January 11 last year. You cannot access your money on these three accounts during the term. With Principality and Skipton you don’t have to put money in every month, but with First Direct you do.
Co-op Bank Regular Saver, available to current account holders, also pays 7pc. up to £250 per month – but the rate is variable. Variable rates also come from Nationwide Flex Regular Saver (6.5pc up to £200 per month) and NatWest Digital Regular Saver (6.17pc up to £150 per month). Nationwide offers you three withdrawals a year, while NatWest and Co-op let you withdraw whenever you want.
The highest rate comes from Principality BS and is 8pc, but this only applies for six months. You can deposit a maximum of €200 per month – and at this level you will have €1,227.53 after six months, including €27.53 interest.