Scarborough responds to Christmas savings club collapse

Scarborough Building Society is responding to recent events by launching a safe and simple Christmas Saver account, to help people prepare for a magical 2007 festive season.

The account will offer competitive interest rates of up to 5.25% and allows unlimited withdrawals from 1 November 2007- helping savers resist the temptation of splashing their cash before Santa arrives.

New members will enjoy an interest rate of 5%, and can take advantage of a limited edition £5 voucher offer, which will see the Society adding £5 to their opening deposit, as a small gift to help them get into the savings habit.

Meanwhile, existing members will receive a higher interest rate of 5.25% to reward them for their continued loyalty and their ongoing commitment to saving.

In the wake of controversy surrounding the recent collapse of a well known Christmas savings club scheme, Scarborough is hoping to give people a safe and secure alternative to loans, credit cards or Christmas clubs when preparing for their families’ festive celebrations.

‘We’ve all heard about the disappointment people have experienced in losing their Christmas savings as a result of the well publicised Christmas club collapse,’ said Scarborough’s Head of Group Marketing, Tony Burdin.

‘These people were doing the right thing – squirreling away their cash regularly from the start of the year to minimise their need to get into debt later on, and it’s very unfortunate that it went wrong for them in this instance.

‘However, we believe that, as a mutual building society, we have a responsibility to make them aware of the additional safeguards a building society account can offer – as well as providing them with a safe haven which will help them to maximise the value of their savings over the next 12 months.

‘We believe this new product reflects our ethos by offering total peace of mind to our customers – and particularly those on low incomes – as well as promoting savings as a positive alternative to today’s ‘spend now – worry later’ debt culture.’

He added: ‘Not everyone is aware, but because building societies are regulated by the Financial Services Authority, there are protections in place to ensure that savers’ money is safe.

‘That, coupled with our commitment to providing a long term fair deal means they simply can’t go wrong.’

Christmas Saver accounts can be opened with as little as £10 and savers can make whatever size of deposit they wish, whenever suits them, in cash or by cheque – up to a maximum limit of £1,200 over the year.

The accounts can be opened and maintained at any of Scarborough’s branches in Nottingham, Leeds, Middlesbrough, Lincoln, Hull, Scarborough, Bridlington and York.