New Skipton product aims to “prevent December debt”

The Skipton Building Society has launched a new savings account which it claims can help people spread the cost of the festive season.

An interest rate of 6.8 per cent is paid on savings with this account, which allows customers to make regular monthly deposits that can only be accessed from November 25th 2007, in time for Christmas next year.

The launch of this product follows a survey by MoneyExpert.com which revealed that four million British consumers have found themselves paying the bill for last Christmas while shopping for this one.

John Goodfellow, chief executive of Skipton, said that this savings account offers an alternative to credit cards, which can often lead to the "ridiculous situation" of costs adding up to more than was initially spent.

"What we’re offering instead is a way for savers to actually make money on the cost of Christmas, by getting a fantastic return of 6.8 per cent on the funds they put away each month," Mr Goodfellow said.

"Plus, unlike other regular savings accounts, we’re helping them to be disciplined and keep the money for what it’s intended – paying for Christmas – rather than dipping into it earlier in the year."

Minimum monthly investments of £10 are required to maintain this account and a maximum total investment of £1,800 per year is permitted.