Nationwide has explained how some members can get £120 cashback as it warns of "tighter budgets" ahead of the festive season. The world's largest building society says early November is the most popular period for buying most Christmas gifts, according to its latest research.
Some 36% of people plan to reduce gift spending this year, with 14% of those surveyed concerned about being able to afford Christmas, and 42% opting out of Black Friday deals this year.
Black Friday Predictions and Spending Plans
Nationwide predicts 12.8 million transactions on Black Friday, around 8% more than last year. Its research also found that people across the UK expect to spend an average of £103 per person on Christmas gifts this year.
Those aged 45-54 anticipate spending an average of £119 per loved one, followed by 25-34-year-olds (£116) and 35-44-year-olds (£115). By comparison, over-55s expect to spend £90 per loved one, while 18-24-year-olds anticipate spending £87.
More than a third (36%) expect their gift spending to fall below last year's levels, including 12% who anticipate it being considerably lower. In contrast, 15% expect to spend more, while almost half (49%) anticipate spending roughly the same as last Christmas.
How Members Can Get £120 Cashback
To help manage Christmas spending, people are planning to set a strict Christmas budget (26%), use loyalty points or rewards (24%), cut back on personal spending (23%), buy more items on sale (21%), spread purchases across several months (20%), and start spending earlier than in previous years (17%).
Nationwide reminded customers that its FlexDirect current account holders can now receive £120 cashback during the first year: £5 monthly for direct debit transactions and £5 monthly for debit card purchases, while continuing to offer 5% interest on balances up to £1,500 for the initial 12 months.
Mark Nalder, Payments Director at Nationwide, said: "Christmas remains one of the biggest spending moments of the year, but our research shows many households are planning ahead, starting their shopping now two paydays ahead and taking a careful approach to managing costs. From setting budgets to using loyalty rewards, people are looking for practical ways to make their money go further. My top tip is look for a current account with cashback for example we re-launched our FlexDirect current account* in autumn with cashback on direct debits and everyday spending."
Black Friday remains a huge shopping moment, with around 12.8 million transactions expected on the day, up 8% on last year, and almost 44 million across the wider Black Friday period. Showing that the day remains an important shopping moment, even though many people are questioning whether it always offers the best value.
