A SAVVY saver has revealed how he stashed away almost £1,000 for Christmas with three clever savings tricks that anyone can do.
Sammie Ellard-King, 35, can now enjoy spending the cash on presents, food, decorations, plus all the trimmings without having to worry about breaking the bank or going in to debt.
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Along with his partner, Charlotte Johnston, 35, Sammie has been building a festive fund which involves him capitalising on a clever feature that comes with online bank, Monzo.
This is a facility which automatically “swipes” a set sum of money into designated virtual jars.
Sammie, who is self-employed and runs financial website Up the Gains to help others learn about money, told The Sun: “I first set up ‘savings pots’ with Monzo around four years ago and now have around nine in total.
“Some are joint with my partner, such as the one where we are slotting money away for the festive period.”
The couple, who live in Fleet, Hampshire have saved a regular amount here every month since January.
Sammie said: “Generally speaking, I set this at around £50 a month, but sometimes squirrel away more.
“It only takes a matter of seconds to set up a pot, and you can then earn a decent rate of interest on your hard-earned cash.
“It’s great having a dedicated pot building in time for Christmas.”
While rates can fluctuate, Sammie is currently earning 4.22% on this pot.
That means on savings of £1,000 he makes around £3.50 a month, or £42 a year.
He said: “I like this ‘ring-fenced’ approach because it means I never accidentally dip into my savings.”
ROUND IT UP
The money aficionado also takes advantage of another of the digital bank’s features known as “round-ups” to help boost his festive fund.
Sammie said: “Say, for example, you buy a £2.75 coffee using Monzo, the bank rounds up your spend to the nearest pound and adds 25p to the pot where you’ve turned on ‘round-ups.’
How you can find the best savings rates
If you are trying to find the best savings rate there are websites you can use that can show you the best rates available.
Doing some research on websites such as MoneyFacts and price comparison sites including Compare the Market and Go Compare will quickly show you what’s out there.
These websites let you tailor your searches to an account type that suits you.
There are three types of savings accounts fixed, easy access, and regular saver.
A fixed-rate savings account offers some of the highest interest rates but comes at the cost of being unable to withdraw your cash within the agreed term.
This means that your money is locked in, so even if interest rates increase you are unable to move your money and switch to a better account.
Some providers give the option to withdraw but it comes with a hefty fee.
An easy-access account does what it says on the tin and usually allow unlimited cash withdrawals.
These accounts do tend to come with lower returns but are a good option if you want the freedom to move your money without being charged a penalty fee.
Lastly is a regular saver account, these accounts generate decent returns but only on the basis that you pay a set amount in each month.
“I’m a big fan of automated saving – for me, it’s a complete no-brainer.”
It’s free to set up current account with the digital bank, which doesn’t have any high street branches.
Monzo bank offers pots as part of its current account, and customers can round up money automatically as well as scheduling regular deposits.
These types of features have now become common among many online and high street banks.
Plum, Chip, Chase and Starling are among the apps and digital banks offering auto-save features
Sammie said he has used several of these in the past to take advantage of the best rates on offer at the time.
Before moving your money to a new savings account, it’s vital to choose the right account for your needs – and to check the rates on offer.
You can do this with a site such as moneyfactscompare.co.uk.
Using Monzo isn’t the only hack Sammie uses to build his Christmas savings either.
SUPER-CHARGE SAVINGS
Sammie also has another clever trick to “super-charge” the amount he has to slot away.
“I run all of my spending through cashback sites,” he said.
Once you’ve found a deal on an item you want to buy, you just click through the link, and the kickback is paid into your account.
He said: “This hack really comes into its own in the run-up to the festive season when I’m spending more.”
The first part of Sammie’s trick involves him buying virtual gift cards.
“I usually do this through Everup or Cheddar,” he said.
“With sites such as these, I can earn cashback on purchases I make with gift cards.”
With Cheddar, users can get cashback while shopping at partnered shops automatically by linking their bank account to the app.
Users can also earn “instant cashback” by purchasing gift card credit to spend at certain stores, usually between 2% and 4% including at supermarkets like Tesco, Asda and Sainsbury’s.
With Cheddar, you can sign up for free (no credit checks or fees), and can claim a £5 bonus.
Similarly, with EverUp, you can earn cashback on gift card purchases. Both are free to sign up to and there’s noe fee.
Sammie then “turbo-charges” his earnings even more with another nifty move.
“Having bought gift cards, I ‘stack’ the money I earn from them by using the cards to make purchases via more well-known cashback sites such as Topcashback and Quidco,” he said.
How does cashback work?
Lynsey Barber, The Sun’s consumer editor, explains…
Cashback sites pay you to shop or take out deals.
They get paid commission – and give you a slice of money to keep too.
Most cashback sites are free and you just need to sign up with your name and email address.
They pay cashback on a range of purchases – from your weekly shop at the supermarket, one-off purchases at major electrical retailers and even renewing your insurance or signing up to a broadband service.
Deals available vary from one day to the next, as do the shops where you get it, and on different cashback sites, so it’s worth checking what’a available whenever you shop online.
Make sure to check the price too, don’t just go for the best cashback deal – you’re not saving money if it costs more.
Cashback isn’t usually paid immediately, with some paying in around 30 days but some transactions can take longer so don’t rely on the money for spending on essentials.
To get the money back you need to click a link through the cashback site – if you miss this step out and shop directly with the retailer then you’ll miss out.
Cashback sites often give new users special welcome discounts on top of the usual offers too.
Make sure to read the details first so you know when you can expect to get the cashback, and any other requirements.
Some sites like TopCashback will also let you upload your receipts from shopping in real life so you can get cashback on this spending too.
Often you can stack other deals with cashback if the retailer is offering a sale or other discount at the same time.
Once you’ve earned your cashback you can “cash out” by moving the money to your bank account, but you may have to wait to do this depending on the deal.
Always remember it’s not a deal if you didn’t intend to buy it anyway.
“There’s a kind of ‘loophole’ which means you can do this, and essentially get a ‘double hit’ on the amount of cashback you get.”
With the likes of Topcashback and Quidco you can earn money on anything from everyday shopping to clothes, gadgets, phone deals and car insurance, just by making purchases with retailers via their websites.
Sammie said: “On occasions, thanks to a combination of cashback on gift cards from Everup and Cheddar – and then cashback from Topcashback or Quidco – I can get as much as 16% cashback in total.”
Remember when using cashback sites, you’re only saving money if you intended to buy the item in the first place.
Meanwhile many gift cards have expiry dates and if a shop goes under they could become worthless, so if you use the trick make sure you spend them as soon as you can.
MAXIMISE YOUR POT
One of Sammie’s top tips to make your money work even harder is to move earnings into an account paying interest.
“Lots of people make the mistake of leaving their cashback with the website where they earned it,” he said.
“But once I’m able to ‘cash out,’ I transfer my earnings into my Monzo pots, where the money can potentially earn more than 4%, paid monthly.”
While you might think all of this is time-consuming, Sammie insists this isn’t the case.
“It really isn’t that complicated or long-winded,” he said.
“The key is to download the relevant gift cards onto your phone before you go shopping.”
That way, he adds, even if you buy a £100 gift card, but only spend £65, you’ll still have £35 ‘rolled over’ for the next time you shop.
“The gift card ‘lives’ in the app,” he said. “It’s just a case of getting into good habits.”
Gift cards: what you need to know
Gift cards seem an easy option for gifts – but make sure they spend them quickly.
That’s because they can soon become worthless.
Check the expiry dates on each card and set an alert on your phone to spend it before its validity runs out.
Many cards are only good for 12 months and some stores start counting down from when the card is purchased.
If a retailer goes bust, your gift card won’t be protected even if it is still in date.
“Another simple ‘win’ is to buy presents on ‘special events’ like Black Friday when there are some great deals to be had.”
The annual shopping event takes place on November 29 this year.
With just under 10 weeks to go until Christmas Day, Sammie and Charlotte, who works as a producer, have close to £1,000 in their Monzo Christmas savings pot.
This is down to a combination of regular monthly saving, round ups and topping this up with cashback.
Sammie said. “Having this money squirrelled away means we can really enjoy the festive period.
“We can buy lots of presents, treat ourselves to nice food, and go out with friends, without having to worry about money.”
Another of Sammie’s top tips is to start saving early.
“Once this year’s festivities are out of the way, it’s worth setting up a Monzo account with a dedicated pot ready for next year,” he said.
“Then you can make regular savings each month – and also look into setting up ‘round-ups’ – helping to make Christmas 2025 a lot easier on the wallet.
“It’s all about thinking ahead.”
In addition to Christmas, the couple have pots for an emergency fund, a sinking fund, a holiday fund – and a fund to furnish their new home.
In total they save around £300 a month in to nine different pots, adjusting the allocations depending on the priority at the time.
“Once the festive period is over, Charlotte and I will channel more into the ‘new home’ fund, said Sammie as they prepare to move from their their two-bed house in Hampshire to their “forever home” in Ramsgate, Kent.
“We are saving hard so we’ll be able to afford things like fridges and sofas when we move in – hopefully in early 2025,” said the financial whizz.
“This will mean we won’t have to buy stuff on credit, reducing the risk of us getting into debt.”
How to save money on Christmas shopping
Consumer reporter Sam Walker reveals how you can save money on your Christmas shopping.
Limit the amount of presents – buying presents for all your family and friends can cost a bomb.
Instead, why not organise a Secret Santa between your inner circles so you’re not having to buy multiple presents.
Plan ahead – if you’ve got the stamina and budget, it’s worth buying your Christmas presents for the following year in the January sales.
Make sure you shop around for the best deals by using price comparison sites so you’re not forking out more than you should though.
Buy in Boxing Day sales – some retailers start their main Christmas sales early so you can actually snap up a bargain before December 25.
Delivery may cost you a bit more, but it can be worth it if the savings are decent.
Shop via outlet stores – you can save loads of money shopping via outlet stores like Amazon Warehouse or Office Offcuts.
They work by selling returned or slightly damaged products at a discounted rate, but usually any wear and tear is minor.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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