The best Christmas savings offers from supermarkets

It may seem premature to be thinking about Christmas in August, but did you know that some supermarkets will give you a 5% Christmas bonus on your savings throughout the year?

Many supermarkets offer Christmas savings programs that allow you to save money on your weekly shopping and then secure a Christmas bonus.

Here we take a closer look at how much you can earn at Asda, Co-op, Iceland, Morrisons and Sainsbury's, and explain the risks involved.

What is a Christmas savings plan?

Supermarkets' Christmas savings programs allow customers to save money over time using loyalty cards or stamp books that can be topped up in store or online.

These programs often offer rewards for reaching savings milestones. The amount you can earn ranges from 3% to an impressive 5.3%, which is higher than the current top-rated instant-access savings accounts.

The reward usually comes in the form of vouchers or a card that combines your savings and the bonus, which you can then spend in December, although some programs allow spending all year round.

Most vouchers or cash rewards can only be redeemed at the supermarket that offers the program. The exception is Sainsbury's, where the reward can also be redeemed at Argos.

• Learn more: best and worst supermarkets

How much can you save?

Here we've summarised how much your bonus will be depending on how much you save. The programs are listed alphabetically and below the table we've explained a bit more about how they work.

Asda Christmas Savings Card

How it works Asda customers can save and earn cash bonuses in store or online with their card all year round.

This is how much you can earn The maximum bonus is £15 and to get this you need to save at least £280, which equates to an interest rate of 5.3%. The smallest amount you can put away is £30, which will get you a £1 bonus, which equates to 3.3%.

When you get paid The last time to top up is November 10th at 5pm. You will receive the bonus until November 11th at 9am.

Apply: AsdaGiftCards.com

Cooperative savings stamp

How it works Shoppers can buy stamps in the shop for £1 and once a stamp book is filled with 48 stamps, you get a bonus. You can buy as many stamps as you like and spend them at any time of the year.

How much can you earn? For each completed stamp booklet you will receive €2, which corresponds to a bonus of 4%.

When you get paid The program runs all year round, so there is no deadline for purchasing stamps. You can only spend your bonus on stamp books completed in December.

Apply In business.

Iceland Bonus Card

How it works You can top up your Bonus Card in store or online and also receive a cash bonus. The offer is valid all year round and those who pay with the Bonus Card can also receive discounts in store.

How much can you earn? For every £20 you save, you'll get a flat rate of £1, which is a 5% bonus. The maximum amount you can hold on your card is £1,000 (including bonuses).

When you get paid The bonus will be paid out within 24 hours. Each bonus automatically expires 24 months after the last use of your card.

Apply: Island.de

Morrisons Digital Christmas Saver

How it works You can buy digital Christmas savings vouchers in Morrisons stores all year round, but not in Morrisons Daily stores. You must be a member of More from Morrisonsits loyalty program to purchase the stamps.

How much can you earn? Morrisons will give you a £1 bonus for every £49 you save. The maximum bonus is £6 and you must save at least £197 – that's a 3% bonus.

When you get paid Your Christmas savings vouchers will be totalled on 31st October and if you buy any after this date they will be added to your balance for 2025. You can either have these vouchers sent to you as an e-code for online use or load them onto your Morrisons More account.

Apply In business.

Sainsbury's Christmas Club Card

How it works This card allows you to save in store all year round and receive a cash bonus. The money you save with the card can then be spent at both Sainsbury's and Argos, including online.

How much can you earn? For every £50 you save, you will receive £2.50, which is a 5% bonus. The maximum bonus you can receive is £25.

When you get paid You must top up your card by November 1st to receive the bonus by the end of November. The bonus expiry date is printed on your card.

Apply Sainsbury's in store

• Learn more: Comparison of supermarket loyalty programs

What about Aldi, Lidl, Tesco and Waitrose?

Although Tesco offers a Christmas savings program, top-ups were stopped in April this year, meaning new customers can no longer benefit from an additional bonus.

Top-ups were available between December 26, 2023, and April 1 this year, so if you've already topped up, Tesco says your money will be held in trust until it's used to provide your Christmas vouchers. Top-up and bonus vouchers will be sent to you along with your Clubcard vouchers in your November statement.

Tesco's website says that customers will be informed about future Clubcard Christmas savings plans “as soon as possible”, so it's possible that a new scheme could be introduced in the coming weeks. We've asked Tesco for more information and will update this story when we learn more.

Aldi, Lidl and Waitrose do not have Christmas savings programs.

However, Aldi and Lidl are consistently the cheapest supermarkets in our monthly analysis, meaning you may save more by shopping with them than you would get as a bonus from other supermarkets' deals.

• Learn more: cheapest supermarket 2024

Is your money safe?

Unlike savings accounts, the money saved in supermarket systems is not subject to Financial Services Compensation Scheme and most of the credits are non-refundable, meaning if one of the supermarkets goes bust, you lose your money.

Some providers, including Iceland and Tesco, keep your money in separate, secured accounts. If you are concerned about this, you should check the terms and conditions carefully before signing up.

Would a savings account be more suitable for you?

If you're looking to make some extra cash in time for Christmas, it might be worth considering an instant access savings account. This means your money is protected by the FSCS and you have more flexibility to spend your money where you want.

Many offer the option of monthly interest payments as well as the flexibility to access the income when needed.

The highest interest rate currently available for an instant access monthly interest account is offered by Cahoot, which offers an APR of 5.2% and only requires a minimum deposit of £1.

• Learn more: the best savings accounts