The YBS Christmas financial savings account paying a bumper 5% – it is NOT too early… however there’s a catch

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If you want one of the highest savings rates currently available, then it might pay to start thinking about Christmas.

Although last year’s celebrations are still in the rearview mirror, a Christmas regular saver is now on offer from Yorkshire Building Society* paying 5 per cent interest.

Saving for the 2026 festive season might be the last thing on your mind in February – but starting now can help you avoid stress in 11 months’ time.

The account comes with two catches: one that will help you save by limiting the opportunity to raid it, and another that caps its benefits. 

You’re only allowed to withdraw money on one day during the term of the account, curbing you from dipping into the pot.

But the other catch is that you can save a maximum of £150 a month, so interest earned won’t have as much chance to snowball.

The account also matures early, on 31 October, and YBS then transfers your money to a separate easy access account, ready for Black Friday and Christmas spending.

Someone opening an account on the day it launched – 15 January 2026 – and depositing the maximum each month would have a pot worth £1,534.23 by the time the account closes.

That moment has passed, so those starting now would end up with less but if you get the account open in February, you will benefit from this month’s £150 allowance. 

> Find out more about opening a Christmas saver with Yorkshire Building Society*

Lock your money away until Christmas with this account

Saving for Christmas: What are your options?

Despite the low maximum monthly deposit, you can still use this account to build a very good pot to use specifically for Christmas or for something else, as long as you don’t withdraw money or close the account.

Yorkshire Building Society’s Christmas account* is popular, with more than 75,000 savers stashing their money in these accounts over the last four years.

Savers who opened an account in January 2025 saw their accounts mature with an average balance of £1,020, according to the building society.

And with research showing that households planned to spend an average of £596.70 on Christmas 2025, putting in £70 a month would cover this bill.

If you want to squirrel even more money away for Christmas, a regular easy-access savings account is probably a better bet. You could also use a cash Isa for tax-free earnings if you haven’t used your full allowance.

One drawback is that they won’t always come with restrictions around withdrawing money, so you’ll need to be disciplined to avoid dipping into the funds.

The investment platform Trading 212* has a cash Isa that pays 4.4 per cent for new customers, which includes a 0.8 per cent boost for 12 months.

There aren’t any withdrawal restrictions, plus it’s a flexible Isa, which means you can withdraw money and replace it in the same tax year without affecting your balance. You can open this account with just £1.

> Find out more about opening a Trading 212 cash Isa* 

Cahoot’s easy-access Sunny Day Saver pays 5 per cent interest variable for 12 months on balances up to £3,000. Interest is paid annually, so you won’t get your earnings in time for Christmas. 

But you can withdraw money at any time, so you’ll still be able to use your savings for the festive season. You only need £1 to open the account.

> Find out more about opening a Cahoot Sunny Day Saver