How to start saving for Christmas

For many years, I’ve been taking the financial stress out of Christmas spending. Every payday in the build-up to the festive season, I put money into a savings account. And it’s a game-changer when it comes to buying Christmas presents. From Christmas stocking loot to teacher thank-you gifts, I’m covered.

In previous years, I also used to top up my supermarket Christmas Club account most weeks. But I was slack last year and didn’t contribute regularly, so when it came to buying my Christmas goodies, I really felt the pocket pain.

Now that the Christmas credit card bills are paid off, I’m back on track to get ahead.

There are various Christmas savings plans, including hampers, supermarket clubs and retailer Christmas clubs. I checked them out to see if any offer a cracker deal.

Saving schemes compared

Chrisco hampers and gifts

Chrisco is the big player in the Christmas hamper world. It offers a selection of festive hampers. You choose one then spread out payments over the year until you cover the cost for it. The earlier you sign up, the cheaper the weekly hit.

You’ll pay a lot more for the groceries than if you’d bought them at the supermarket though. For example, Chrisco’s Mega Christmas hamper costs $1,266.20 ($36.18 per week spread out over 35 weeks), but we found it’s a lot cheaper to buy the groceries separately at the supermarket.

On the day we tracked prices, Woolworths was the cheapest supermarket. Taking into account specials, the 127 items we selected to match the Chrisco hamper totalled to $802.75. It was even cheaper for loyalty card members, who would have only paid $793.18 – that’s a saving of more than $470.

It was a similar story at the other stores. New World’s basket cost $885.73 (Club Deal members paid $861.93), and at Pak’nSave, the groceries cost $823.74.

Another downside to Chrisco’s hampers is that you can’t choose what’s in them, and you might not want all the items – three packets of dried pasta may not be top of your festive shopping list.

Also, everything arrives at once, so you’ll have to find room to store it all, including the meat and 29 frozen goods.

As well as hampers, Chrisco’s can help you save for other goods, such as toys and outdoor equipment, but we found that’s also not a great deal. Chrisco’s Lego Ideas Tuxedo Cat will set you back $203.70 ($5.82 over 35 weeks), but Farmers sells it for $179.99. The Springfree Trampoline Compact costs $1,999.40 at Chrisco, but you’ll save $300 buying it directly from the company.

Chrisco also offers a “Headstart” plan, where you make refundable payments to next year’s Christmas before choosing a specific hamper. But as soon as you commit to a hamper, its cancellation policy applies.

A Chrisco spokesperson told us Chrisco is about more than just price and its customers value the convenience, choice and peace of mind it provides.

“Customers make regular, affordable payments spread throughout the year and choose the payment and instalment frequency that suits them best. In that way there are no budget blow-outs at the end of the year and Chrisco does not charge interest on goods.”

Our verdict

Although Chrisco is convenient, it’s also expensive – even paying for your groceries to be delivered from the supermarket is much cheaper.

Supermarket clubs

New World, Pak’nSave, Woolworths and Four Square South Island stores issue Christmas club cards. You top them up at the checkout, or you can arrange regular bank payments. Cards can be registered, which means you can deactivate one if you lose it.

Cards are valid at any of the company’s stores, but they can’t be used for online shopping, and there are some things you can’t buy with them, such as lotto or instant kiwi tickets.

With the Woolworths Christmas Club, you can spend your savings any time, but you’ll get a 5% top up based on your balance at the end of November.

With the Foodstuff’s schemes (New World, Pak’nSave and Four Square South Island), the earlier you start saving, the greater your bonus. Every $5 saved before 29 February gives you an extra 33¢, decreasing throughout the year to 18¢ between 1 September and 30 November. At the South Island stores rates are 1¢ less. You can use your card anytime, but the bonuses aren’t credited to your account until December.

FreshChoice supermarket also has a Christmas saver plan, where you set up a direct debit or automatic payment. You can use your saved amount from 1 December to 31 March and get a 5% discount on the costs of your saving plan. However, you can only spend it at the supermarket where your plan is registered. This makes it less flexible than other supermarket plans.

Our verdict

Supermarket Christmas clubs are better value than Chrisco hampers. If you put away $15 a week for 35 weeks, you’ll have $525 plus bonuses. You can choose the goods you want (although some clubs may exclude some items).

If you don’t spend it all, you can use it the following year.

Hampsta Christmas savings club

With Hampsta, you make deposits throughout the year by direct debit or automatic payment. Hampsta also lets you make deposits at some retailers (Mad Butcher or Super Liquor).

You can use your Hampsta card in-store at 17 chain stores, including Briscoes, Rebel Sport, Toyworld and the Mad Butcher, or buy gift cards from Hampsta’s website. But there’s no guarantee the retailers listed with Hampsta will stay the same throughout the year.

Hampsta charges you a $39 annual fee and $40 to cancel (you can’t cancel in your first year).

Hampsta rewards you with $10 for every new member you refer. Active paying members can open a Junior Savers account for their children, aged 16 years and under. The Junior Savers account has no annual fee.

You can only access your savings from 1 December to 10 January.

A Hampsta spokesperson told us the company has to charge fees to sustain the service and provide the level of security for the funds held.

“Members can vary the amount they wish to save and frequency and can place their account on hold. The company also assists with hardship refunds. Hampsta also runs offers and promotions during the year where we provide cash bonuses and cash incentives to increase contributions.”

Our verdict

The Hampsta Christmas savings club isn’t good value. You automatically lose $39 with its annual fee.

Savings accounts

Another option is a savings account that rewards you for adding to your balance and not making any withdrawals.

Bank savings accounts

Most banks offer a bonus saver account, with no monthly fees. The account offers a low base interest rate but gives you a bonus interest rate if you don’t take out any money and make regular deposits. Each bank has different terms and conditions, and you may have to meet other criteria to be eligible, such as having a transaction account with the bank.

Credit unions

Some credit unions have no-fee Christmas accounts where you earn interest. You set up regular payments or contribute when you have spare cash, but you can only get your hands on the money in November.

Unity credit union Christmas Saver account kick-starts new accounts with $10, but it will also sting you a $10 fee if you withdraw any money between 1 February and 31 October.

Our verdict

Bank accounts are flexible – you can decide what you spend your money on, and the cash is there in case of an emergency. However, interest rates are dropping, so if you’re just wanting to save for groceries, a supermarket club gives better returns.

Cancellation costs

What happens if you change your mind?

Chrisco gives you a fee-free 21-day “cooling-off period”, meaning you can cancel for free in the first 21 days. After that, you forfeit 20% of what you’ve paid (up to a maximum of $250). If you can’t keep up your payments, the order you selected (in products or vouchers) will be reduced to the amount you’ve paid.

Woolworths, New World, Pak’nSave and Four Square let you use your balance early, but you won’t get any bonuses if you do.

FreshChoice lets you end payments at any stage. You can either reduce your plan to the amount paid or request the amount paid to be returned.

Hampsta has no cooling-off period, and you can’t cancel your membership in your first year before 1 December. After you cancel, you’ll get what’s remaining in your account once the $40 cancellation and $39 maintenance fees have been deducted. In the case of financial hardship, Hampsta may refund your money (but it will still charge the cancellation fee).

Is your money safe?

Chrisco is a form of lay-by, so if it goes into receivership, you’ll be a creditor with priority over unsecured creditors. However, when a company goes bust, there’s often no money left to pay out.

Hampsta funds are held separately in a trust account, and retailers are reimbursed directly from that account.

The supermarket clubs’ funds are held by their parent companies in separate bank accounts or under separate companies.