Save £5,000 by Christmas – 3 Month UK Savings Challenge
It’s September, and if you’re like me, you know that Christmas is less than 100 days away (oh my, oh my) and that means you and your beloved bank account are about to face the biggest spending season of the year.
Whether you want to splurge on yourself or buy something fancy for mom and dad, or just want to go all out bonkers and get everyone something, one thing is for sure — we want to avoid going into debt and start 2026 minted (well, one can only dream), but to start the year with something.
So here’s a 3-month savings challenge that will help you put away £5,000 by Christmas — without giving up all life’s pleasures.
Let’s get cracking!
Step 1: Set Up the Right Savings Account
Before you start saving, consider parking your money in a place that works for you.
Right now, some UK accounts are paying up to 5% interest — that’s extra money just for letting it sit there.
- Chip Instant Access gives you a base rate of 2.75% (Variable) and a boosted base rate of 4.48% (New customers) for 3 months from opening the account, starting August 7th 2025. It’s FSCS protected and gives you the flexibility as it allows for instant access to funds with no penalties for withdrawals. Find out NOW!
- As a new customer with a Chase account, you receive a boosted rate of an extra 2.25% AER fixed interest for 12 months, in addition to their standard saver variable rate of 2.75% AER (as of August 2025). This means you could earn 5% AER until your 12 months are up. Click here for more
- Atom gives you a variety of savings plan that best suits your current lifestyle, with savings rates of up to 4.42%, it’s FSCS protected, and completely free to open. Get the info here
💡 Tip: This may be a shocker to some, but – Keep your savings separate from your current account to avoid “accidental” spending.
Step 2: Use an Automated Savings App
We get it! Staying up-to-date with your savings can feel overwhelming, stressful and downright mood-damping. So let technology do some of the work for you.
Give these apps a go:
- Plum – AI-powered savings & investments
- Monzo – Round-up spending to savings pots
- Emma – Track bills & auto-saves spare cash
💡 Pro move: Think about setting up an automatic transfer on payday — you won’t miss what you never see.
Step 3: Follow the 50/30/20 Rule (With a Twist)
To hit £5,000 in 3 months, you’ll need to save about £1,666 a month (deep breaths, you can do it)
Here’s how to tweak your budget:
- 50% Needs (rent, bills, food)
- 30% Savings (instead of the usual 20%)
- 20% Wants (social, treats, gifts)
💡 Use a budgeting app to track progress in real time — most send weekly reports so you can adjust quickly.
Step 4: Cut Hidden Costs
Do a quick audit on your life, what are you spending on, where are you spending your money, and is it really necessary? All this can free up hundreds:
- Cancel unused subscriptions
- Switch utility providers
- Use cashback platforms for essentials
- Use couponing sites to save on your next shop
Check out Thriftycroc.co.uk for the latest deals and coupons to save on your next shop
Step 5: Earn Extra Before Christmas
Try to boost your savings with seasonal side income, bring those hidden talents to light:
- Sell unused items on Vinted/Facebook Marketplace
- Offer pet-sitting or babysitting
- Take on freelance gigs
The world is your oyster!
💡 Use your extra earnings to top up your savings account the same day you get paid, this will help you avoid those ‘accidental’ spending.
You’ve Got This
Three months, £5,000 — it’s bonkers, it’s ambitious, but it is doable if you stay disciplined. The earlier you start, the more interest you’ll earn before Christmas. So set up your accounts today and let your money start working for you.
