Christmas savings scheme to be available from HBOS

The Halifax Bank of Scotland has announced plans to launch a Christmas savings scheme for lower income customers, which it hopes will make up for its role in the Farepak savings scheme disaster.

The retail bank hopes to launch its Christmas savings scheme plan in a couple of months, with the launch scheduled for May, and thousands of basic account holder with low incomes being contacted and advised about the savings scheme.

One official for HBOS stated: 'We have always believed that we did the right thing on Farepak, our view hasn't changed. But we do accept that the banks could do more for low income customers. We have all learnt lessons from Farepak and we are trying to do something about it.'

Around ten thousand customers of the HBOS will be contacted as part of the scheme from the bank. The bank has a high volume of basic account holders – around three and a half million – most of which come from lower income households and families. Banks officials feel that the scheme could become very popular, and have described the savings plan as a ' commercially sustainable product'.

The savings scheme is set to run from May to October, and will need to be opened with five pounds, with a further minimum £5 deposit each month. Customer can then use the cash to buy Christmas gifts or to cash in for retail vouchers for high street retailers.

Tom Smith
06.04.07