High interest savings accounts 'could help after Christmas'

Consumers who compare savings accounts before Christmas could set themselves up nicely for a happy new year.

Those who compare savings accounts in the next few weeks could ensure their finances are in healthy shape come the new year, if recent comments from an expert are anything to go by.

Whether it is a high interest savings account, online equivalent or cash ISA, finding the right type of product for one's needs is crucial, said Reza Attar-Zadeh.

Mr Attar-Zadeh is director of savings and investments at Abbey Savings and remarked on recent research by the lender that showed one in five British consumers to have no money at all kept aside for a rainy day.

In addition, a third of the survey's respondents said they would break open their piggy banks and use an average of £221 in savings to pay for festive gifts and celebrations.

Over half of those questioned are planning to cut back on expenditure in the coming weeks, while one million are set to return the presents they receive for cash.

But the bank said people should be careful not to keep cash stashed away just for use at Christmas.

"Whether savers decide to put their money aside for the long term, for a specific purpose such as a Christmas or a holiday, or for emergencies, the most important thing is to work out a plan of action that works for them," Mr Attar-Zadeh suggested.

Abbey Savings' research follows another survey it carried out this year, which discovered that over a quarter of parents have no investments or money put aside for use in times of need or as a nest egg their offspring can use in later life.

The company said mums and dads are likely to be facing an "uphill struggle", due to rising childcare costs, the increasing price of education and other fees such as gas and electricity bills. Some 29 per cent of the parents surveyed said they intend to start saving a bit more on a monthly basis.

By Mark Hornby