Around £1.2 billion is to be received in Christmas cash this year, new research shows, as people ask for money from their loved one rather than traditional gifts.

A quarter of those polled by first direct said they would put the money into savings accounts or investments, while nine per cent will pay off debts.

Head of savings at the bank Bruno Genovese commented: "You don't need a large sum to open a savings account and it can help get the New Year off to a positive start, laying the groundwork for a regular savings routine."

Mr Genovese pointed out that this can help create a nest egg that can be drawn upon when unforeseen expenses arise.

Dave Penny, managing director at Invest Southwest, recently urged people not to fund Christmas through personal loans and instead to spend within their means.

He recommended establishing a budget and ensuring it is kept to.