Savvy shoppers can earn the equivalent of 4.2% interest overnight when they use an Asda Christmas Savings Card this weekend.
What’s the deal?
With Christmas on the horizon, many families are already putting cash aside for the big festive food shop. Throughout the year Asda lets shoppers save money using its Christmas Savings Card and pays bonuses once a year to customers who do so.
This year, the bonus payment will be made on Monday 13 November 2017, meaning shoppers who load a card this weekend can earn the equivalent of 4.2% overnight.
Here are the bonuses paid:
- Save £144 and get a £6 bonus – an effective return of 4.2%
- Save £97 and get a £3 bonus – an effective return of 3.1%
- Save £49 and get a £1 bonus – an effective return of 2%
You need to have saved the qualifying amount by 5pm on Sunday 12 November 2017 to get the bonus payment the following day. You can load funds onto the card at any Asda checkout or customer service desk.
While you are limited to a £150 balance (including bonus) on each card, there is no limit to the number of cards you can hold.
Why should I care?
UK consumers are expected to spend a record £20 billion on Christmas this year, according to Halifax. The big Christmas food shop an integral part of that figure, so this deal can help cut the cost of food and drinks for the festive season.
Plus, an inflation-busting overnight return of 4.2% beats the rates offered by all savings accounts.
What’s the catch?
If you take advantage of this offer you must spend your balance in an Asda shop - you are not able to use the card online. The card can be redeemed against anything in Asda including groceries, clothes, home entertainment and technology.
The Christmas savings card (and the money loaded on it) is valid for a period of 2 years from your last transaction. You cannot use the card after that date and any unused balance on the card will be lost.
Unlike many giftcards, the Asda Christmas Savings Card can be registered online. This means 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 shop 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.
Also, see our seven reasons not to buy a gift card guide for more information.
What are my other options?
Other supermarkets run savings schemes which are worth considering. Iceland has the most competitive card, giving customers with a Bonus Card a £1 bonus for each £20 they save.
Meanwhile at the Co-op you’ll earn £2 per £48 saved, also better than the Asda scheme.
You can also read the Moneywise guide to cutting your costs at the supermarket to find ways of lowering your grocery bills, regardless of where you shop.
Where can I find out more?
Full details are available on the Asda website.