Save Money for Christmas.

Although this information will not have helped you to save money for Christmas 2007 - just too late in the day - it will help you if you want to put money away for Christmas 2008.

Despite the collapse of Farepak Christmas (2006) these clubs are still top choice with hundreds of thousands of people in the UK. Why is this?

Around 120,000 people lost some £40 million when the club collapsed and went into administration in October 2006. The firm's liquidators recently said the victims are expected to receive just 5p for every £1 lost - eventually. The author personally finds this insulting.

This was such a shame and disappointment for all those people who had thought they were doing the right thing.

The most sensible option is to open an account at one of the building societies. The problem is that you must be disciplined and not dip your fingers into the account until Christmas. This may prove too great a temptation!

This is probably why Christmas savings accounts are so popular – the money is locked in until November and stays there in readiness for Christmas when you need it.

Stepping in to fill the need for a reputable savings club, the Post Office, one of Britain's most reputable brands, recently began offering its own Christmas scheme.

From January next year, 2008 savers will be able to make deposits of £5 to £500 at any branch, and will be able to bank a maximum of £1,000 a year.

Scheme members will not be able to withdraw money until November 2008, when they can use their Christmas Club card as a debit card at selected shops, or exchange money for gift vouchers. So far, the Post Office has negotiated deals with some 200 chains, including Sainsbury's, Argos, Boots, Debenhams, House of Fraser, Thorntons, Woolworths and WHSmith.

If you are one of the people who need to have your money locked away, do enquire at your local Post office for full details. This means if you can only afford to bank a small amount of money, you can lock it away in one of these Post Office Christmas Savings accounts. No disappointments with vanished money – just when you need it at Christmas.

Don't forget to see how you canlook after the pence (or cents)and out-wit the shops.