Many South Islanders to pay for Christmas with cash

Media Release
8 December 2014

Many South Islanders to pay for Christmas with cash rather than credit this year.

Thousands of South Islanders are set to pay for the festive season with savings rather than credit this year.

South Island based credit union NZCU South have seen a significant increase in both the number of people choosing to open Christmas specific savings accounts and the amount saved by members this year. This year the credit union’s members have saved over $5million in Christmas Savings accounts (in over six thousand accounts).

NZCU South are also pleased to report that those who have opted to use their Christmas Saver accounts require less credit or lending to get through the festive season.

“Our members use this money during what is a typically expensive time of year. Not only do they have holidays, Christmas presents and Christmas dinners to pay for, but things like school fees and uniforms follow close behind.” says NZCU South CEO Tania Dickie.

“This money generally goes straight into the local economy. It’s heartening to know that people are thinking about saving, and spending what they have rather than piling things on their credit card or taking out a loan and incurring steep interest rates in the new year.” says Ms Dickie.

Members have told NZCU South that they’ll be spending their Christmas savings on Christmas presents, the Christmas meal grocery shop, petrol and other travel expenses, and for paying off other bills so they can relax and enjoy the holidays.

Southland member Margaret Poulgrain said the Christmas Saver is an excellent account to join because you have money at the end of the year.

“I am happy you cannot access it and that it is available in November because December is too late to get organised. It is an excellent way to save for holidays,” said Ms. Poulgrain.

Savings figures:
• The highest amount saved is by Dunedin members at $1.549 million
• The highest percentage of members with a Christmas Saver Account within NZCU South is Invercargill branch with 34% of members having an account
• The highest average amount saved is $1,098 by Greymouth members
These figures are as at 30 October and by 20 November the amount saved will be close to $5.2 million.

This high level of savings for Christmas is in contrast to Statistics New Zealand’s biannual figures released in November 2013 (for the year ended March 2013) that indicate that New Zealander’s household saving fell to negative $0.8 billion. NZCU South suggest that this may be because when it comes to Christmas its members are starting to become more organised and having a goal like Christmas presents is a good incentive for saving.

NZCU South Christmas Saver funds come due and are available to members from the 20th of November.

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