Writing in the latest MoneySavingExpert.com weekly email, Martin Lewis explained how the major UK supermarkets run Christmas saving schemes
Martin Lewis has revealed how to get an “instant” 6% boost on your Christmas supermarket shop by paying into a savings scheme.
Writing in the latest MoneySavingExpert.com weekly email, Martin Lewis explained how the major UK supermarkets run saving schemes which give you a bonus if you use them to pay for your Christmas shop.
Martin said: “Digital saving stamp schemes from Tesco, Asda, Iceland, Sainsbury’s, Co-op and Morrisons aim to encourage year-long saving for Christmas…
“Yet the way they’re usually structured means there’s a loophole where you can just put the money in on one day to get the bonus instantly.”
For example, Tesco Clubcard holders get a bonus worth £1.50 when they save between £25 and £49.50. The biggest bonus you can get is £12, which you get when you save between £200 and £360.
If you’re an Asda shopper, you can sign up to its Christmas Savings Card. The cashback starts at £1 when you save between £30 and £79, rising to up to £15 when you save at least £280.
Sainsbury’s shoppers get £2.50 back on every £50 saved, up to a maximum of £25. Morrisons More Card holders get a £1 bonus when they save £49, while the maximum bonus of £6 is applied when you have saved £197.
You should be aware that these savings schemes are not covered by the Financial Services Compensation Scheme (FSCS) in the same way that a regular bank account would be.
This means that in the rare event that a supermarket was to go bust, you would not get your money back. There are plans for supermarket savings schemes to offer protection in the future, but this has not yet been approved by Parliament.
MSE recommends moving your savings into a supermarket scheme at the last moment, to minimise your risk and maximise your money. MSE said: “If saving for Christmas over the year – a fantastic aim – save your money in a bank account.
“Then withdraw the cash and buy savings stamps the day before the bonus date… This way, you also earn double interest – from the savings account AND the savings scheme.”
How to save money in the supermarket
- Keep an eye out for yellow sticker deals.
- Look for discounts and voucher codes through websites like LatestDeals and HotUKDeals.
- Sign up to mailing lists for brands and retailers you frequently use.
- Pick up free supermarket magazines – they often have vouchers inside.
- Try the Downshift challenge – this is where you swap branded goods for supermarket-own labels.
- Meal prep to reduce impulse buys and spending on what you’ve already got in the cupboard.
- Freeze any leftovers that can be eaten at a later date to avoid food waste.