8 ways to save £725 in time for Christmas with minimal effort
MoneyMagpie Editor and financial expert Vicky Parry warns of Christmas debt already looming – and how to avoid it
Christmas is five months away and you probably aren’t even thinking about it yet. You’ve got the school holidays or your annual vacation to worry about first!
However, putting a plan in place right now means you won’t be panicking come December – or worse, getting into debt. The average UK household spent an average of £713 extra in December 2024 on top of their usual monthly outgoings. If you plan now, you can save £700 in time for Christmas, so you’re not reaching for the credit card to cover it.
Try these things to save money between now and Christmas. When you save using something like a discount code, pay yourself the difference between the discounted and full price to top up your Christmas fund faster, too.
Switch your bank account
Banks love to tempt new customers, which is why many offer financial incentives to switch your main current account to them. At the time of writing, you could earn up to £180 free cash simply for switching. Make sure you switch using the Current Account Switch Service when you apply. This not only makes you eligible for the cash but also protects against any problems such as payments going to or from your old account.
The best current account switch deals right now are:
- Santander Edge - £180 plus £25 Amazon voucher
- First Direct - £175 bonus
- TSB - £100 then £15 a month for six months (£190 total)
- Barclays Bank - £175
Each has eligibility requirements, so read the small print before you apply.
Christmas fund top-up: £175+
Get a balance transfer credit card
If you’re paying a lot in interest each month on your credit card, and it feels like you’re constantly only paying interest and not your balance, it’s time for a rethink.
A balance transfer credit card allows you to shift your existing balance to it, with a 0% interest period. This is often a year (sometimes more), to give you some breathing space, so your monthly repayments go on reducing your actual balance instead of spiralling interest.
Make sure you pay off the balance before the end of the 0% period to avoid high interest fees. Balance transfer cards also have high rates for purchases, so keep it only for shifting your existing balance rather than spending.
Christmas fund top-up: £50+
Shop around on insurance
If you have insurance policies coming up for renewal in the next few months, make a note ahead of the date it renews. Turn off auto-renew, too.
A couple of weeks before your policy ends, shop around and compare prices on a site like GoCompare or MoneySupermarket for a like-for-like quote. If you like your current provider, go back to them to ask them to match the quote – or, go with the new provider instead.
Christmas top-up fund: £50+
Set a cashback site as your homepage
When you’re shopping for your insurance, or your mobile phone contract, or even your everyday spending, a cashback website will build you a nice pot of money for your Christmas savings.
Sign up to a few, as some have exclusive deals with retailers. Set your favourite as your browser homepage, to remind yourself to check on the cashback site if there is a deal to be had as soon as you start shopping for something online. Reputable cashback sites include TopCashback, Swagbucks, and Quidco.
Christmas fund top-up: £50+
Search for discount cards and schemes
While discount cards used to only be for students, these days there are lots of schemes that mean you could be eligible for discounts on your everyday spending.
The TOTUM card, formerly the NUS student card, has expanded its remit to include a wide range of people, not just students. If you’re a member of a professional organisation or undertaking some professional development study, you’re eligible.
Key workers can apply for schemes such as those run by Network, who also offer a discount scheme for carers (including unpaid carers, unlike many similar schemes).
Christmas fund top-up: £50+
Switch to a water meter
As water prices continue to rise, so does the need to switch to a water meter. If you’re single or living in a couple, or have more bedrooms than people in your home, it’s likely that a meter could save you hundreds of pounds a year.
Water meters mean you pay for the water you use rather than a property estimate. Make sure it’s the right choice for you though, as once a property goes on a meter it can’t be reversed. Tenants with a rental contract longer than six months can apply for a meter too – their landlord can only refuse permission if it would cause unreasonable cost to install (such as digging up a garden to get to the pipe).
Christmas fund top-up: £150+
Use supermarket loyalty cards
If you like to shop at a supermarket with a loyalty card, make the most of it! These days, many run ‘loyalty only’ prices which can save a significant chunk of change on your weekly shop.
More than that, you can earn points to put towards money off your Christmas shop. Some also offer deals to exchange points for days out or products, such as Tesco Clubcard and Sainsbury’s Nectar, which could save you a ton of cash on buying Christmas gifts.
If you are looking for a new credit card or want to be particularly savvy (and a loyal customer), using a card such as one from Tesco Bank or Sainsbury’s can help you earn even more points on your everyday spending, too. Just make sure you pay in full each month.
Christmas fund top-up: £100+
Sweep £25 on payday
Set up a standing order between your current account and a Christmas savings pot, so that you sweep £25 on payday. That’ll save you at least £100 between now and Christmas, without you noticing!
Paying yourself first is a great habit to get into to build a savings pot or emergency fund. Work out your monthly budget and if you can afford more than £25, set the standing order for that amount. If it sweeps across the day you’re paid, it’s much easier to ignore the cash compared to when it’s sitting in your current account.
Christmas fund top-up: £100+
There you have it: if you follow all of these tips, you could save at least £725 in time for Christmas.
- Some of the brands and websites we mention may be, or may have been, a partner of MoneyMagpie.com . However, we only ever mention brands we believe in and trust, so it never influences who we prioritise and link to.
