Pre-paid savings cards

There are 3 main providers: Hampsta, The Warehouse, and NZ Post with its "Loaded for Christmas" card.

How it works

You deposit payments on to your card throughout the year. You can do this through regular automatic payments or make in-store payments where this is available.

Access to your savings is locked in until the “Christmas period” (this varies from mid-November to mid-January, depending on the card). Any balance left over in your account accumulates until the next Christmas.

All of these cards have rules about where you can spend your savings. The Warehouse card is the most restrictive, as it can only be used in its stores. Hampsta's is restricted to its partner retailers (currently The Mad Butcher, Noel Leeming, Super Liquor, Bond & Bond, Hoyts, Postie Plus, Baby City, Gemtime Jewellers, Marbeck's, Event Cinemas and Toyworld).

The NZ Post card gives you the most freedom: you spend it anywhere that accepts Visa. It also has a list of partnership stores at which you can get special offers and discounts including Mitre 10, Real Groovy, Noel Leeming, Bond & Bond, Shell, Just Jeans, Portmans, and Jay Jays, among others.

Upside

• You get to choose the goods you want.
• Automatic payments force you to save (and you can top up in-store and online).
• The Warehouse gives a 5 percent discount on all purchases made with its card.
• The Warehouse and NZ Post both offer prize draws for their cardholders throughout the year.
• Hampsta's joining fee is paid for by its partner retailers and not by the customers.

Downside

• Your money earns no interest.
• The NZ Post card costs $15 to buy – this is before you can start saving.
• The NZ Post and Hampsta cards have an annual account maintenance fee ($25 and $39 respectively).
• Transactions on the NZ Post card may attract a credit-card surcharge from some retailers.
• You may be restricted in where you can spend your savings – especially with The Warehouse card and to some extent with Hampsta’s.

Bottom line

These schemes work like a savings account, but because of the deduction of the annual account maintenance fee for Hampsta and the NZ Post cards you don’t get to spend all the money you’ve put in. The Warehouse card is free, has no administration fee and offers good discounts – but you can only use it at The Warehouse.