Post Office to launch new Christmas Club

The Post Office has announced plans to launch a new Christmas Club offering customers a secure and convenient way to save for Christmas 2008, with additional membership rewards that will increase their spending power.

The Post Office Christmas Club will fill a gap identified by HM Treasury’s Review of Christmas Saving Schemes by Brian Pomeroy, Chairman of the Financial Inclusion Taskforce, in March this year carried out in the wake of the Farepak collapse.

All funds deposited in the Post Office Christmas Club will be governed by strict E-money regulations and held in a protected account under the control of Bank of Ireland. The funds will only be accessible to Club members.

Post Office Managing Director Alan Cook said: “As one of the UK’s most trusted brands with an unparalleled retail network, we are responding to the need for a safe and convenient way for people to put money aside for Christmas.

“We have been working on this for many months to get the best scheme possible for our customers, to provide them with a way to save small regular amounts which ensures their cash is fully protected and looked after securely for the year until they need it at Christmas. Customers will be able to start saving money at any of our 14,000 Post Office branches from January for Christmas next year.”

Derek Walpole, Chairman of the Christmas Prepayment Association, said: “The Christmas Prepayment Association (" CPA" ) is delighted that the Post Office is launching a Christmas Club for 2008. It is of valuable importance that choice, convenience and security are offered to consumers in order to help them save for a debt free Christmas. The Post Office Christmas Club will now be able to provide this valuable way of saving to consumers through their network of branches.

“The CPA offers consumer protection through stringent requirements covering security of savers' money and a code of practice to which all members must adhere.

“We accordingly welcome the Post Office's application to become a member of the CPA and are confident that upon completion of formalities, the Post Office Christmas Club will become a valued member of the CPA.”

George Thompson, General Secretary for the National Federation of Subpostmasters, added: “Subpostmasters and mistresses throughout the UK have been calling for a product like this as many of their regular customers are users of Christmas hamper schemes. We are delighted that the Post Office is able to bring to market this great new scheme for the benefit of our subpostmaster network and their customers.”

The scheme will be available at all Post Office branches from January 2008. Customers will be issued with a Christmas Club card which they can use to make deposits over the counter. The minimum single deposit will be £5, and the maximum individual payment £500, up to a total of £1,000 savings per card per annum.

Funds will be locked away until 1 November 2008, when the Christmas Club card can be used as a pre-paid debit card with retailers signed up to the scheme or exchanged for gift vouchers at Post Office branches.* The Post Office has negotiated partnerships with around 200 retailers so far, covering grocery, wine merchants, fashion, travel and leisure, health and beauty companies. Top names include Argos, Boots, Debenhams, Halfords, House of Fraser, Peacocks, Sainsbury’s, Thorntons, Woolworths and WHSmith.

Yvonne West, Manager of Sainsbury's Business Direct, said: "Sainsbury’s are excited that the Post Office has stepped into this market offering a fully secured Christmas savings product. Our partnership with the Post Office means that we can all now demonstrate good corporate social responsibility to ensure that members of Christmas savings clubs have the opportunity to place their savings in a product in the knowledge that their funds are secure."

Christmas Club members will be able to benefit from further rewards as the Post Office negotiates discounts and bonuses with retailers. These deals will be announced from January and throughout 2008, and will provide significant benefits compared to current rates available from High Street savings accounts.

Customers interested in the Post Office Christmas Club can pre-register for more information from today by calling 08457 22 33 44. They will receive a registration pack during December and from January 2008, they can take their completed application form plus ID to their local Post Office to complete the process and start saving.