A Christmas Club Savings Account is one way to maximize short-term goals and jump start long-term goals. Traditionally it is used for holiday spending, 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.
What is a Christmas Club Savings Account?
- A short-term savings account,
- Funds are deposited periodically throughout the year.
- Earns interest.
- A penalty may be charged if funds are withdrawn before the end of October
4 Things to Save for with a Christmas Club
1. Holiday Travel and Experiences.
Want to attend the ballet or symphony? 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.
Friendship State Bank employee Jody Allee used her Christmas Club account 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 can provide significant long-term savings in interest costs, but saving 10% to 20% can be challenging. A Christmas Club Savings Account can provide a less overwhelming way to save and removes the temptation to spend. Save over $1300 in a year by depositing just $25 each week to your account. 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 and Insurance Premiums.
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.
Questions? Call us at 812-667-5101
Is it too late to open a Christmas Club Savings Account?
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.