Supermarket Xmas Boost
Earn a year's interest (up to 6%) in a day
Many supermarkets urge you to save for up to 6% bonuses in their (not UK-protected) savings-stamps schemes.
Yet the bonuses are often paid solely based on what you've got saved up on a set date - so it's possible to bag a year's interest in a day. This is a rundown of schemes from Asda, Tesco, Morrisons and more.
Get Our Free Money Tips Email!
How supermarket savings stamp schemes work
Supermarket savings stamp schemes encourage year-long saving for Christmas, yet a loophole allows you to get the year's bonus in just one day.
Most supermarkets pay out the bonus based on how much you’ve saved by a specific day or month, so dunk the cash in just before and they’ll add up to 6% on top. Unlike normal savings accounts, you're paid a bonus based on the total amount saved on the bonus day.
The savings themselves come in the form of booklets or electronic cards which you can top up a little at a time. Some supermarkets only allow stamps to be redeemed at set points in the year, while others will let you spend at any time.
Don't think of this as a gift
It isn't the supermarkets being generous, it's good business acumen. You save for a year, they earn interest on your money, and eventually give you a little back. And more importantly:
You must spend the cash at that specific retailer, so they effectively lock in your custom.
You won't be surprised to hear there are some exclusions on what you can buy with the stamps - you can't usually spend them on lottery tickets, petrol or goods from third party concessions (when a retailer has a space in a larger department store). Some supermarkets also don't allow you to redeem them online.
How safe are supermarket savings schemes?
It's important to understand these DO NOT have the same protection as savings in a bank (supermarket bank savings do though, eg, Tesco Bank - see the Safe Savings guide for more). In fact, this is exactly what happened with the Farepak debacle back in 2006. It's the reason we've always cautioned against savings clubs.
If saving for Christmas over the year - a fantastic aim - save in the bank (see Top Savings Accounts and Top Cash ISAs). Then withdraw it and buy savings stamps the day before the bonus date to bag double interest.
As this technique's about keeping a small sum of cash on the cards for just a couple of days, the risk's reduced. The chance of a big supermarket going bust in that time is pretty slim, though nothing's impossible.
The loophole
Supermarkets tend to pay the bonus on a specific day or month, normally during November or December. The bonus earned only depends on how much is in there, not how long it's been there. Therefore, you can simply...
Buy all the stamps/credit required just before the bonus date, get the full bonus, then use the funds to shop.
Get Our Free Money Tips Email!
Top Christmas 2018 schemes
Up to 5% - cash in at any time
Iceland's electronic Bonus Card savings scheme runs year-round. For every £20 you save, you get £1 free which you can spend at any point.
The £1 bonus is paid regardless of the time of year and arrives in your Bonus Card savings account within 48 hours of hitting the £20 trigger. You can save up to £1,000 per card - you'll get the £1 bonus for every £20 top-up (equal to 5%).
Up to 4% bonus - pays out once a year
Asda's Christmas Savings Card scheme pays a £1 bonus if you save between £49 and £96, a £3 bonus for between £97 to £143, and those with £144 get a £6 bonus (equal to 4%). There's a limit of £144 per card but you can have multiple cards.
You can start the card at any point and you've got until 5pm on Sun 18 Nov to add the maximum credit to get the bonus. The bonus will be credited by 8am Mon 19 Nov 2018.
4% bonus - pays any day in Dec
The savings scheme from the Co-op is a paper savings stamp card. You get £50 off your shopping bill if you use a completed card (£48 worth of stamps) to pay for your shopping in December. This bascially means you'll get £2 off a £50 shop (equal to 4%). You won't get the bonus if you save any less or spend the card at any other time of year.
There's a £48 max per card but you can collect as many cards as you like so if you're likely to save more, you'll need a new card. The cards have no expiry date and you can top them up throughout the year.
Up to 3% - pays out in Nov/Dec
Morrisons Christmas Savers is a digital savings stamps scheme where you buy stamps for £1 a time. It pays a £1 bonus if you buy between £49 and £96 of stamps, a £3 bonus for between £97 to £145, a £4 bonus for between £146 and £193 and those with £194 get a £6 bonus. You'll need to buy your stamps by 31 October 2018 to get the bonus, which you can spend between 5 November and 31 December. You'll be given your balance in the form of vouchers, which you can spend in-store or on the Morrisons grocery website.
Up to 6% - pays out in Nov
Tesco's Christmas Saver scheme is an extension to the Clubcard scheme, where you can choose to save up all your Clubcard vouchers for the year and get a bonus in your November statement if you top-up your savings. It pays a £1.50 bonus if you top-up between £25 and £49.50, a £3 bonus between £50 and £99.50, a £6 bonus between £100 and £199.50 and a £12 bonus between £200 and £360.
You've got until 16 Oct 2018 to top-up and get the bonus in your November statement. Bonus vouchers are valid for two months from the date of issue.
Get Our Free Money Tips Email!
Join the MSE Forum Discussion
SPOTTED OUT OF DATE INFO/BROKEN LINKS? EMAIL: BROKENLINK@MONEYSAVINGEXPERT.COM
Free MoneySaving email
-
Cheapest iPhone 11 tricksUp to £460 off
-
Martin: 'PPI reclaiming's over...'But I've 13 more reclaims for you'
-
13 savers for disabled peoplePls tell us more
-
Cheap energy deals endingBut you can still save £300+/yr
-
Virgin £100Mb b'band '£19/mth'10 days only
-
100 days till XmasWhat to do now
-
New. 1.6% easy-access savingsBut it's a sharia account
-
Pension alertAre you risking £1,000s?
-
Got a PayPal account?Has it given you £5-£50 in free cash?
-
UCAS backs down over debt ads - but not enough
20 September 2019
The university admissions service has partially backed down over the sending of emails which include advertising from a private student loan firm, but MoneySavingExpert.com founder Martin Lewis is calling on it to go further. -
Revealed: Sainsbury's trial of new Nectar loyalty scheme extended nationwide
20 September 2019
Sainsbury's is quietly trialling its new Nectar loyalty scheme throughout the country, with shoppers across much of the UK now able to boost their points by pre-selecting offers on certain products, and MoneySavingExpert.com can reveal a formal launch of the scheme is expected within weeks. -
Thomas Cook worries? Here's what you need to know
20 September 2019
Holiday firm Thomas Cook has confirmed that it is seeking £200 million in extra funding as it attempts to prevent a collapse – if you're worried, here's what you need to know. -
Almost 80% of retail sales paid for by card
19 September 2019
Shoppers paid for almost £300 billion of purchases on their credit and debit cards last year, according to data from the British Retail Consortium, while just £78 billion of purchases were paid for in cash -
Apple launches iPhone 11, 11 Pro and 11 Pro Max – how to find the cheapest deals
19 September 2019
Tech giant Apple has unveiled its range of new iPhones - the iPhone 11, the 11 Pro and 11 Pro Max. It's also cut the price of its current models including the iPhone XR and iPhone 8.
-
How much the Govt expects you to give your children for university
Update Note 25 May 2017: The ready reckoners below have been updated with the new 2017/2018 living loan amounts. Also since first writing this blog, and seeing the strength of feeling it attracted, I have written an open letter to the Uni Minister asking him to start telling people about this. Yet sadly received his no we won’t...
Tools & Calcs
-
Cheap Energy Club
We ensure you're on the cheapest tariff
-
Loans Eligibility
All of the top unsecured personal loans
-
Credit Card Eligibility
Tools for different credit card types & purchases
-
Mortgage Best Buys
Compares thousands of mortgages
-
Mortgage Calculator
Eight calcs for all your mortgage sums
-
Free complaints tool
Resolver - the automated complaints system