Set up a savings account 'straight after Christmas'

Forward-thinking Australians should open a savings account straight after Christmas to give them the whole year to put cash aside for the next year, an expert has stated.

Jeremy Cabral, personal finance expert, told the Sydney Morning Herald that this enables people to benefit from a year's worth of interest as they save.

"Calculate the amount you need to save by Christmas, then set up a direct debit from your regular income to go directly into that account," he advised.

Those who compare savings accounts and put cash aside for the 2012 festive season may also benefit from having money available throughout the year to purchase gifts.

This could mean they can take advantage of sales and can take their time looking for the perfect gift for their friends and loved ones.

Earlier this month, the Australian Bureau of Statistics published the latest retail trade figures, which showed that seasonally adjusted retail turnover in September was up by 0.4 per cent, which may suggest that some Aussies had started their Christmas shopping early.

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