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The Post Office has reported signs of households setting money aside during the late summer to prepare for expensive winter months.
It processed more than 17 million personal cash deposits between July and September, representing a 7 per cent annual increase and a 3 per cent rise on the previous quarter.
A survey commissioned by the Post Office showed that 54 per cent of people saving for festive expenses were putting funds away earlier than usual this year.
Almost two-fifths (38 per cent) began planning for festive costs during the summer, while 31 per cent said they typically start saving during that timeframe.
Ben Hunter Woollard, head of banking at the Post Office, said: “As households brace for a more expensive festive season, Post Office branches have handled a high number of personal cash deposits this summer.
“For many people, using cash is a helpful way to plan ahead, budget and put money aside for specific costs.”
The Post Office has an agreement with many banks, allowing people to do their everyday banking over its counters.
Ying Shi, postmaster at Caterham Post Office, said: “Over the summer, I noticed more customers putting money aside for occasions later in the year, particularly Christmas.
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“Some are saving for gifts for children and grandchildren, while others are setting money aside for celebrations, family gatherings or household expenses.”
The news comes as MoneySuperMarket reported Google searches for “how to afford Christmas” have risen by more than three times (261 per cent) year on year and that gifting presents – often the only “thought-about” expense of the season – only accounts for around 15 per cent of the total cost.
In the latest post on his website, Martin Lewis also said toy sales are now on at Argos and Asda, with more stores expected to have sales.
Other tips include spreading out savings from September, October and November income to avoid using most of your savings from December to cover the “estimated typical £700 income”.
The MSE team also advised to beware of gift cards and vouchers. They said vouchers have risks, including: “If the store goes bust, gift vouchers usually become worthless.
“Many have expiry dates, which often aren’t made clear enough.”
Censuswide surveyed 2,000 people across the UK in October.
