A new “festive” savings account promises easy access to cash and a competitive interest rate of 6.5%. The Manchester Building Society has unwrapped its Christmas offering and encouraged customers to sign up to take the financial pressure off next year’s festive season. The account is available now and can be opened with just £1, offering a 6.5% variable interest rate, allowing savings to grow.

The mutual says users can save up to £150 a month with an annual interest rate of 6.5%, making it a savvy move as Brits across the country tighten their purse strings after splurging over Christmas. Interest is calculated daily and paid to the Festive Regular Saver account annually, on the anniversary of the day an initial deposit is received.

Interest earned over a 12 month period, based on the rate of interest staying the same during the term, could add up to £63.38 if £150 is paid in each month and no withdrawals are made during the term.

It means users could withdraw £1,863.38 12 months after signing up for an account, at which point it will convert into an easy access model, enabling full access to funds over the busy Christmas period.

The Festive Regular Saver accounts can only be opened in-person in a building society branch.

While it might seem a long way away, the prospect of easing money worries next Christmas is likely to entice customers to the festive deal.

A survey from MoneySuperMarket revealed that one in 10 people are relying on credit cards for their Christmas shopping this year, with average UK families expected to spend £1,626 on presents and celebrations.

The figure includes around £181 spent on gifts for family and friends, over £350 on food and drink and rising energy bills costs expected to total £105.97 over the festive period.