Credit Union savings account
You could become a member of a Credit Union and open a savings
account with them. Credit Unions are owned and controlled by their
members. The main Credit Union in Doncaster is Danum
Credit Union.
The Credit Union decides who can become a member. This may be
based on where someone lives or works. For example, members of a
credit union will often live in the same area.
To join Danum Credit Union, you will need to live or work in
Doncaster Borough.
Good features of Credit Unions
It's much easier to open a Credit Union account than a bank or
building society account
• You can save as much or as little as you
like and as often as you like
• It's easy to save at local collection
points or direct from your wages
• You'll get free life assurance
• Doncaster's Danum Credit Union may pay a
dividend subject to credit union rules
• Danum Credit Union offers a 5% discount
for savers who withdraw their money as vouchers. For example, if
you saved £100 , you receive vouchers worth £100, but keep £5 in
your savings as a bonus
• Credit Unions offer competative low cost
loans to their members
• If the Credit Union goes bust you will
be able to get most or all of your money back
But you need to remember:
Find out more about
Credit Unions on the Association of British Credit Unions (ABCUL)
website or the ACE Credit Union Service
website.
Alternatively, you can ring ABCUL on 0161 832 3694 or email
info@abcul.org.
Special Credit Union Christmas
savings account
These work in the same way as ordinary credit unions (see
above), but you need to remember:
• It will be harder to take out your money
before Christmas, so you can't dip into your savings during the
year
• Some schemes pay out in vouchers rather
than cash
If you want to open a Credit Union account to save for
Christmas, contact Danum Credit Union and tell them you want an
account to help you save for Christmas.
Bank and building society
savings accounts
There is a wide choice of banks and building societies who offer
many different types of savings accounts
You can find out more about this on the Moneymadeclear
website.
Before opening an account, make sure you understand how it will
work. For example, find out how much notice you will have to give
if you want to take out money.
Good features of bank and building society
accounts
• There is a wide choice of banks and
building societies
• You can usually choose how much you want
to save and how often
• You will get interest on your
savings
• Your money will be secure
But you need to remember:
• It may be hard to be strict with
yourself and save regularly
• It may be too easy to dip into your
savings before Christmas
• You will have to provide proof of
identity and where you live to open an account
Special building society
Christmas savings account
These work in the same way as ordinary building society accounts
(see above), but you need to remember:
• It will be harder to take out your money
before Christmas, so you can't dip into your savings during the
year
Supermarket Christmas stamp
schemes
You can buy Christmas saving stamps from the supermarket as and
when you can afford to. You will usually have a booklet to stick
your stamps in and can spend your savings in the supermarket near
to Christmas.
Good features of supermarket Christmas stamp
schemes
• Some schemes offer a bonus
• You save as and when you can
• You can spend your savings in the shop
before Christmas
But you need to remember:
• If the supermarket goes out of business
you may not get your money back
• You won't get any interest on your
money
• You can only spend your money in the
shop you've been saving with
• It may be hard to be strict with
yourself and buy stamps regularly
Christmas hamper and voucher
schemes
You may remember that the Farepak hamper scheme went bust and
lots of people lost their money.
Companies offering hamper and voucher schemes have now agreed
with the government that you will get your money back if the
company goes bust.
Make sure the company you choose guarantees that you will not
lose your money if they go out of business.
Please note that hamper schemes from your milkman are different
and are explained below.
Good features of Christmas hamper and voucher
schemes
• Your regular payments will be collected
from your home
• It may be easier to save if you know
someone is going to call for the money
• You'll get your hamper or vouchers just
before Christmas
But you need to remember:
• You won't get any interest on your
money
• There will be some shops where you can't
use vouchers
Hamper schemes from your
milkman
You will pay your milkman a regular amount each week towards
your Christmas hamper. The hamper will be delivered to your home
near Christmas.
Good features of hamper schemes from your
milkman
• Your savings are collected regularly on
the doorstep by someone you know
• You will get a bonus
• It may be easier to save if you know
someone is going to call for the money
• It's harder to dip into the savings if
they are being looked after for you
But you need to remember:
• If the milkman goes out of business,
you're unlikely to get all your money back
• You will not get interest on your
money
• They pay out in vouchers
• You will have to buy from a
particular shop or supplier
Christmas clubs with
shops
With Christmas clubs you save what you can when you can with a
local shop, for example, a butcher, corner shop or toy shop. You
should be given a savings booklet to show how much you have
saved.
Good features of Christmas clubs with shops
• Some schemes offer a bonus
• You save as and when you can
• You can spend your savings in the shop
before Christmas
But you need to remember:
• If the shop goes out of business you may
not get your money back
• You won't get any interest on your
money
• You can only spend your money in the
shop you've been saving with
• It may be hard to be strict with
yourself and save regularly
• You won't get a bonus
You can also find out about different ways to save for Christmas
from the Consumer Direct Website.