What’s a Christmas Club or a Holiday Savings Account? - CCCU
Friday, January 10 CCCU
The Benefits of Opening a Holiday Savings Account at a Portland Credit Union
A holiday savings account–or Christmas Club account–lets you save money and releases it at the start of the holiday season. See how a holiday savings account at a credit union can help you save for the holiday season the right way.
The holiday season is filled with joy, but it can also create a lot of stress about overspending on gifts, decorations, and other celebratory expenses. When you plan ahead with a savings strategy, you won’t feel overwhelmed when it’s time to start buying gifts for everyone on your list. If you’re wondering how to save money
for the holidays, our Portland credit union has you covered. In fact, the best way to plan ahead for the jolly season is to open a holiday savings account.
What’s a Christmas Club or a Holiday Savings Account?
So, what’s a holiday savings account? Holiday savings accounts used to be referred to as Christmas Club
accounts, but they’re actually used for other occasions as well. The account is used as a practical method for saving money throughout the year, specifically for the holiday season. In most cases, banks or Portland credit unions offer incentives for their customers to set up a short-term savings account, typically in the form of dividends they can earn on deposits. Additionally, some banks charge penalty fees for those who withdraw their holiday savings
With a holiday savings account, you’ll typically deposit a specified amount of money into the account each week or set up automatic transfers every payday. Every bank or credit union has different guidelines and maturity dates for this type of savings fund, but customers can usually withdraw the entire amount right around Thanksgiving without paying any fees.
If you save $20 a week from New Years Day until Thanksgiving, you’ll have almost $1,000 to spend during the holidays. With a $30 deposit each week, you’d have nearly $1,500. The idea is to save a little money throughout the entire year so you’re prepared when winter celebrations require a larger-than-normal budget. We always tell our Portland credit union members that opening an account like this is a simple, but very effective strategy to preparing yourself for the holidays.
Benefits of a Holiday Savings Account
There are many benefits to opening a holiday savings account. In most instances, you can set up an account with a relatively small deposit. Also, as we mentioned, the concept is simple, but an account like this compels people to save more ahead of time. Similar to your regular savings or retirement
account, automatic deposits allow you to save a little bit at a time. When you don’t see the money in your checking account
, you won’t miss it.
Also, holiday savings accounts allow you to earn higher dividends compared to other bank accounts. So, instead of purchasing gifts on a credit card
and paying high interest rates, you can watch your holiday nest egg grow throughout the year in a seperate account.
Holiday Savings Accounts in Portland, Oregon from CCCU
Without a specified account and automatic transfers, it can be difficult to keep up with the simplest savings strategy. With convenient payroll deduction and competitive dividend rates, holiday savings accounts from CCCU are designed to be effortless and effective.
At Consolidated Community Credit Union, we believe our Portland members shouldn’t have to go into debt to get through the holiday season. When you prepare little by little, you’ll minimize your stress and check each item off your shopping list with ease. Get in touch with us, or stop by one of our conveniently located Portland branches to get started with your holiday savings account