Park Christmas Savings Club - is it just a big rip-off?

[FatherJackHackettsUnderpantsHamper]

Now that Christmas 2023 is over, there are loads of adverts on TV for Park, which supposedly helps you to save to pay for Christmas 2024.

However, their main advertised 'benefit' is that you save a certain amount each month and then get it back in time for Christmas in vouchers.

No mention of them paying any interest on the money you're lending them for up to 12 months; and they also obviously massively limit the buying ability of all the money you save - so not only can you not buy any goods that are only available from places that don't accept the vouchers, but you also can't shop around if 'non-voucher' places have the same goods but at cheaper prices. And are the vouchers widely accepted, or are they just for buying from their own catalogue?

What is the actual point in this company? I get that many people - especially those on low incomes - really appreciate the structured discipline and find the regular commitment to saving helpful, but why does it have to be returned in vouchers? Why not just a 'save money, get your money paid back into your bank account/withdraw it in cash in December' scheme - even if they didn't pay any interest in order to pay for/make a profit for running the scheme?

Am I missing something here? What is the benefit of this? And are there now protections in place so that poor folk can't lose all of their savings in another Farepak-type scandal? Why do people bother with this - and effectively reduce the spending power of their limited Christmas budgets even further?

Can someone please explain how the Yorkshire bank one works? It says one withdrawal day during the term but I’m not clear what that means. Essentially I would consider it if it wasn’t possible for me to dip into it.

We have used park for several years and it's fine, we get vouchers in Oct that we spend for christmas. It's just another bill that comes out of our acc, we don't get into debt for Xmas as we have saved all year. We find it helpful, we are from poor and its benefits us.

Whoever uses such crap?
Just why?

Read the thread and you’ll find out

There is no benefit except the money is tied up, meaning the saver can’t spend it.

Really, they’d be better off saving in a building society to get interest or even buying things monthly in sales (but that requires being organised and having space to put things).

I did
Stupid

I thought they went bust about a decade ago. Thousands lost their savings didn't they?

Read the replies and you’ll find out.

Yep so who would ?

I don't understand why anyone want the money back in vouchers, even Amazon. My children asked for quite a few bespoke gifts last Xmas that I couldn't have bought with a voucher and there's lots of things I can get cheaper elsewhere. For example with blue light discount (often discount codes can't be combined with vouchers) or on Black Friday, being restricted to vouchers would cost me much more money in the long run.

It's definitely exploitative of poorer people who can't just put the money aside in a savings account and not touch it until Xmas.

So why was you asking if you already read the answers?

YABU - They are a business and this is their model. They are completely upfront about it so their customers can choose to use their product or a traditional savings product.

There will be some pros in comparison to cash - if you are on a low income, for example, it prevents you dipping into cash savings here and there.

Why would you be happy to lose 10% of your own money for the privilege of spending it where you want . I am not having a go I am genuinely baffled?

Oh thanks for this, I might open one of those

What difference does it make to anyone who doesn't want to use it how it works? For whatever reason it suits some people to use it. They get back what they put in. That's pretty much it.

Apparently they don't you get charged 10% to use your money in any shop that accepts visa/mastercard.

That was Farepak, a similar scheme - not Park.

Not strictly true, its the same charge that you pay for any prepay credit card which a lot of people buy for holidays. Again, its a choice.

I personally dont have a credit card as I am not good with things like that, I have got into trouble with them in the past and would find it too easy to do it again. So if I do need a credit card I use a prepay one (especially for large purchases where you still get section 75 protection), and the fee is part of it. People dont think twice about paying interest on their CC and I see the fee as on the same lines, its the cost you pay for the convenience.

Isn't it the same as using Klarna or people paying off their holidays in installments?

No Klarna or holiday instalments are comparable with an interest free credit card.

For the reasons I said

I save with Park Xmas Savings and I have done for years.

I am not poor, I have an excellent credit rating and i have savings. I just prefer to save for Christmas this way.

it is old fashioned to save in this way , by today's standards, but I like the fact that I cannot access my Christmas fund until November and that Christmas is paid for in advance.

You get back in vouchers what you pay in. I choose spend anywhere cards that can be used online or in a physical shop . Used to have Amazon cards.

The park hampers are an absolute rip off though and I would never buy those.

No, I don't think it does make sense either, personally; but I was just meaning that some people might prefer to know that they have whatever Christmas they want covered, even if it means going without through the year.

Maybe I should have chosen an example like a takeaway, a few drinks at the pub or something else more of a treat that you might be tempted to get, rather than your actual basic family food.

Where was a I being derisive - wondering if poor people might be being exploited?

I didn't know they gave out vouchers for Amazon or major supermarkets; I was thinking that they might restrict you to their own limited, possibly overpriced range - maybe my mind falsely connected them with Studio.

I saw that advert and thought exactly the same. That company are laughing all the way to the bank. Talk about easy money!

Set up a fixed one year regular savings account in October or November and you'll have the money in time for Christmas.

Nationwide is paying 8% to existing customers on their regular saver. Save £50 a month and you'd have an additional £26. You can spend the money wherever you want.