Millions of customers will be pleased to hear that new laws affecting money-saving schemes have come into effect this month. Supermarket savings schemes allow shoppers to save their money over a period of time and often reward loyal customers with cash bonuses for reaching certain targets.
Some of the most popular types of these schemes are Christmas savings plans. For the first time ever, customers participating in these plans will have their money protected due to new laws introduced in January.
From January 1, any business that offers consumer savings schemes must take steps to protect customer payments and provide clear information about how they are safeguarded.
Supermarket savings schemes include Iceland’s Bonus Club, Tesco’s Clubcard Christmas Saver, Asda’s Christmas Savings Card, and Sainsbury’s Christmas Club Card, all of which are covered under the new legislation.
Customers using Iceland’s scheme earn £1 for every £20 they save, while Sainsbury’s shoppers earn 5% on every £50 saved on the card.
Those who have money in smaller Christmas savings clubs, such as Park Christmas Savings, will also be protected by the new law, ensuring that their money is protected even if the company collapses.
The new regulations are part of the Digital Markets Competition and Consumers Act 2024, and if any business fails to protect customers’ savings or misleads customers about how they are protected, they can be fined up to 10% of their annual turnover by the Competition and Markets Authority.