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4 Creative Ways to Maximize Saving Goals

A Christmas Club Savings Account is one way to maximize short-term goals and jump start long-term goals.
 
What is a Christmas Club Savings Account?
 
A Christmas Club Savings Account is simply a short-term savings account where funds are deposited periodically throughout the year to be withdrawn later in the year. Traditionally it is used for holiday spending. Accounts earn interest. A penalty may be charged if funds are withdrawn before the agreed upon distribution date as stated in the account terms and conditions. This helps account owners keep their hands out of the “cookie jar.”
 
Despite the name, Christmas Club funds do not have to be used for holiday spending. Here are four ways to utilize this account to save for other expenses.
 
4 Things to Save for with a Christmas Club
 
1. Holiday Travel and Experiences. Want to attend the ballet or symphony, but your breath is taken away when you log in to purchase tickets? Tickets may seem unattainable to buy on a whim. Saving just $5 to $10 each week could be an easy way to make an experience at the Nutcracker or ISO Yuletide Celebration a reality, creating lifelong memories.
 
2. Weddings. Honeymoons. Vacations. Sidney Adams used her Christmas Club Account to save for her October wedding. Branch Manager Jody Allee used hers to save for an international honeymoon. Don’t have a fall or winter wedding? Deposit your distributed Christmas Club funds in a traditional savings account to hold until your wedding or honeymoon.
 
3. House or Vehicle Down Payment. Having a down payment when purchasing a house or vehcile can provide significant long-term savings in interest costs, but saving 10% to 20% of the total amount you need can be challenging. A Christmas Club Savings Account can provide a less overwhelming way to save and removes the temptation to use it for a new television or concert tickets. Save over $1300 in a year by depositing just $25 each week to your account. This may not be the full amount you need, but is a solid start. Use that $1300 balance to start a Christmas Club for the following year and grow your savings even more while still limiting your access to the funds.
 
4. Property Taxes. Insurance Premiums. Do property taxes and insurance premiums due sneak up on you? You need access to these funds when the payments are due, so a Christmas Club account is a great option if you want to start saving for the following year. Estimate your costs and determine if you want to make weekly, biweekly, or monthly deposits. Calculate and make the deposit accordingly. When the funds are distributed, deposit to a traditional savings account where you can access the funds when the payments are due.
 
Is it too late to open a Christmas Club Savings Account?
 
Many financial institutions allow you to open these accounts throughout the entire year. The Friendship State Bank’s Christmas Club runs from November through October of the following year and can be opened at any time. You can deposit as little or as much as you like at a frequency that works for you.
 
Contact your favorite banker for more details. 
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