It’s not too late to save for Christmas 2025: Discover how much you should put away to finance the festive period

A competitive savings account could not only help to cover the cost of Christmas, but leave you feeling slightly better off, too.

Although the summer has only just come to an end, Christmas is already on the shelves in many high street retailers and some consumers may feel worried they’ve left it too late to set money aside for the festive season.

But, with the average household expected to spend an additional £700 in December (a figure that could rise to £730 if inflation accelerates to 4%), the most expensive month still lays ahead. In the meantime, there are plenty of options that could help consumers cover the cost of Christmas 2025 and leave them feeling slightly better off, too.

How to save for Christmas 2025

“It is not too late to start saving,” reassured Caitlyn Eastell, Spokesperson at Moneyfactscompare.co.uk, explaining that there are many easy access accounts paying up to 5.00% AER on deposits as small as £1 that could give the “boost many will be looking for around this time of year”.

“If savers can put away as little as £25 each month, they will have £100 in reserve by the time the holidays roll around, which can help contribute to a Christmas dinner or on splashing out on a few extra gifts,” she added. Those with more cash to spare, meanwhile, could cover the typical Christmas outlay by saving approximately £180 per month in a competitive account.

However, Eastell urged consumers to check any terms and conditions carefully before opening an account. The highly competitive rate paid by the Chase Saver With Boosted Rate, for instance, is bolstered by a 2.25% AER bonus for 12 months that is only available to new customers. Others may impose a limit on the number of penalty-free withdrawals you can make within a year.