Deal of the week: Get free cash towards your Christmas shop at Iceland

Published by Adam Williams on 20 October 2017.
Last updated on 20 October 2017

Deal of the week: Get free cash towards your Christmas shop at Iceland

Save with Iceland’s Bonus Card scheme and earn free cash to spend in store and online this Christmas.

What’s the deal exactly?

Supermarket Iceland runs a saving scheme to help shoppers save money for their Christmas shop. Usually Iceland rewards savers by adding an extra £1 to their balance for each £20 saved.

However, between now and 29 October, Iceland will add an extra £1 for each £10 you save.

For example, if you save £20 onto the card, you will receive the original £1 bonus plus an extra £2 because of this offer – giving you a balance of £23 to spend in the shop.

Save £50 on the card, and you’ll get £2 for the two lots of £20 you’ve saved, plus £5 for the five lots of £10 you’ve saved – giving you a balance of £57.

Save £100, and you will be rewarded with the usual £5 bonus for saving five lots of £20, plus an extra £10 because of the 10 lots of £10 saved. So for each £100 you save you will earn £115 to spend in Iceland.

The bonus payments will be loaded onto the card by 2 November 2017 and you can spend the balance online or in any of Iceland’s shops until 2 November 2022.

Why should I care?

Consumers are expected to spend a record £20 billion on Christmas this year, according to Halifax, with the big Christmas food shop an integral part of that figure.

This deal can help cut the cost of food and drinks for the festive season.

Plus, if you save £100, you effectively earn 15% interest, which is far more than you can get in any cash savings account.

What’s the catch?

You can save up to £1,000 on the card up until 2 November 2017 and the bonus payments will remain on your card for five years, until 2 November 2022. This means you have plenty of time to spend your money.

Unlike giftcards, the Iceland Bonus Card can be registered, so even if you lose the card itself you won’t lose the cash balance.

However, it is important to remember that the card could be worthless if the store goes bust. We’re not suggesting it will, but it’s important to weigh up the risk versus saving in a Financial Services Compensation Scheme protected account.

See our seven reasons not to buy a gift card guide for more information.

What other options do I have?

Fellow supermarkets Asda and the Co-op also run Christmas saving and rewards schemes. These are worth considering if you don’t have an Iceland close by, but they’re not as strong.

The Asda Christmas Savings Card pays a £1 bonus if you save £49, a £3 bonus if you save £97 and a £6 bonus if you save £144. At the Co-op you’ll earn £2 per £48 saved.

Also read the Moneywise guide to cutting your costs at the supermarket to find ways of lowering your shopping bills, regardless of where you shop.

Where can I find out more?

Full details are available on Iceland’s website.

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