Christmas – it’s the most wonderful time of the year. If only it weren’t the most expensive too!
From piles of presents to endless rounds at the pub, the cost of the festive season quickly mounts up.
So, with Christmas just a few months away, now is the perfect time to start preparing.
After all, timing is key when it comes to saving, with even small deposits starting to snowball (sorry) over the weeks and months.
You can give your savings another boost by downloading Plum (available on App Store and Google Play), which uses automation to increase the amount you’re able to put away.
That’s particularly the case now that they’ve introduced a fun new savings tool that sets aside money every time the sun comes out.
More on that later. But first, let’s look at why now is the time to start saving for the big day –
By starting to save early, you can save a sleighload come December 25!
Start small, save big
While some shops seem determined to start flogging Christmas stuff while we’re still in shorts and shades, most of us don’t begin our planning until much later in the year.
But when it comes to saving, it pays to get going as soon as possible.
Imagine you’re hosting all the family and need £400 to spend on food, booze and some last-minute presents on December 24.
This might sound a lot, but if you began saving for it on December 1, you’d hit the target by setting aside a more manageable £17.40 a day.
Kick off a month earlier, on November 1, and this would reduce to £7.55 a day. You don’t have a time machine, but if you did and started on October 1, it would be less than a fiver.
It’s a simple message – but one that’s worth repeating. Starting early really is the key to successful saving!
Now power up with Plum
The example we’ve shown above resembles a conventional approach to saving that involves manually putting cash aside yourself.
By automating the process, Plum helps you save money without even having to think about it.
Once you connect the app to your bank account, it sets aside money based on the automated savings rules, known as Auto Savers, you have selected.
Plum uses automation to help you save money without even thinking about it
The default function, Automatic, uses an algorithm to scan your earning and spending patterns to work out what you can afford to spare each week, before putting it aside for you.
Another, Round Ups, rounds up everything you spend to the nearest pound and sets aside the difference, while Pay Days saves a set amount every time you get paid.
Then there’s the newest Auto Saver, the Sunny Day Rule, which saves money every time it’s sunny in your local area.
You can vary the amount you save by selecting one of five modes, from Shady Spot, which saves £1, to Blazing Hot, which saves £20.
Plum has done the numbers and found that users who turn on Blazing Hot could save around £2,120 a year, based on the 106 sunny days we saw in 2024*.
Get started now, and you could already have a hefty sum saved by Christmas.
Some Smart Saving Rules are paid features, and therefore fees apply.
Shelter from the storm
If you’re saving for the short term, it’s important to keep your money in a place where it’s easily accessible.
If you earn over a certain amount, you may end up paying tax on savings interest, so it’s worth bearing that in mind too.
With a Cash ISA, you can save up to £20,000 of your annual ISA allowance without paying tax on any of the interest you earn.
Plum’s competitive interest rates can help you reach your Christmas savings goals faster
Open one with Plum, and you’ll benefit from a competitive 4.45% AER (variable) interest rate for the first year, including a 1.41% AER (variable bonus)**.
Every pound you tuck away will be earning interest at this generous rate, helping you reach your Christmas savings goals faster.
Money held in Plum Cash ISA is covered by the Financial Services Compensation Scheme (FSCS) up to a total of £85,000 per customer per Plum banking partner.
The Plum app also supports encryption and face and fingerprint ID for added security. Click here for more information on how your money is protected with Plum.
And if you ever need help, their friendly customer support teams are available 7 days a week.
Turn those pennies into presents: Download Plum for free from App Store or Google Play and start saving today!
*Calculations are made based on the 2024 number of sunny hours. Statistics taken from Statista show that last year the UK had 1,274 hours of sunshine. 1,274 / 12 hours of sun per day = 106 whole days of sunshine.
**Rate includes a Plum bonus of 1.41% AER (variable) if kept for 12 consecutive months and is for new customers only. The interest rate for ISA transfers is 3.04% AER (variable). Interest on our Cash ISA varies. This is the rate from 14/10/25. ISA rules and T&Cs apply. Plum is not a bank.