Despite access to numerous types of savings accounts today, Christmas club accounts remain relevant for those requiring a little extra cash in the run up to the big day. These types of accounts, although small in size, are important because they encourage saving and preparation for a future expenditure. This can also lead to better habits when it comes to budgeting.
If you’re not already familiar with the concept, a Christmas club account is a special short-term savings account set up by a financial institution, such as Warren-Boynton State Bank, to encourage nest-egg building for the holidays. Most accounts can be opened with a nominal deposit at the beginning of the calendar year. Some will only allow withdrawal in the weeks leading up to Christmas, in November for example, which can be helpful for those who have difficulties saving money. The greatest benefit of a Christmas club account is avoiding using credit cards during the holidays when purchasing gifts for family and friends. Rather than getting themselves into a debt during the giving season, customers are able to save a little at a time, whether $5 a week or $50 a month. When the time comes to withdraw their savings from the Christmas club account, there is enough to support their holiday spending. This approach can help prevent customers from racking up large credit card debt.
The beauty of the Christmas club account is customers have plenty of time to build up their balances and if they want to increase the weekly or monthly deposit amounts, they can do so easily.
Visit us at our New Berlin or Springfield branch to open an account today.