Thursday 22nd November 2007
A new method of putting money aside for Christmas spending has been introduced by Post Office, which aims to fill a gap created by the collapse of savings club Farepak.
Post Office Christmas Club is intended to provide a secure and easy-to-use facility for those wanting to put away cash for festivities in 2008, as well as providing other membership rewards at the same time.
Customers who opt for the scheme can start saving from January of next year and they can do so at any Post Office branch in the UK. On joining the Christmas Club, a card is issued which can then be used to make quick and easy deposits - the minimum being £5 and the maximum £500 with an annual limit of £1,000.
Cardholders can start to access their money on November 1st 2008, when the card can be used to pay for items in various shops such as Debenhams, House of Fraser, WH Smith and Boots.
"We are responding to the need for a safe and convenient way for people to put money aside for Christmas," said Post Office managing director Alan Cook. "We have been working on this for many months to get the best scheme possible for our customers."
Customers may be reassured to hear that all savings entrusted to the Post Office Christmas Club will be held in a savings account protected and controlled by the Bank of Ireland. It will also be subject to "strict" electronic money rules.
This may come as a relief to potential savers, following the much-publicised Farepak closure in 2006. The hamper firm went into administration after a series of profit warnings led it to collapse, leaving thousands of Christmas savers with no money.
According to the BBC, the average Farepak customer lost approximately £400, although some are believed to have ended up nearer to £2,000 out of pocket.
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