Holiday spending is expected to grow by 8.5%-10.5% this year, according to the National Retail Federation. The big question is how much of that spending will take the form of debt. Every year, Americans rack up about $1,300 in debt from Christmas shopping. And if you only make minimum payments on that debt, it could take years to pay off. It’s time to break the cycle of overspending during the holidays by planning and saving in advance. If you’ve been wondering are Christmas club accounts worth it, this article will break down the benefits of a Christmas club account.
Build your holiday savings throughout the year
When people go into debt during the holidays, it’s usually because they are already living paycheck to paycheck. Instead of setting a little aside from each paycheck over the course of 10 or 11 months, they are scrambling to find extra cash in their budget a month before Christmas. When there’s not enough extra cash to be found, you put holiday purchases on your credit card and hope for the best.
A major benefit of a Christmas Club account is that it helps you save throughout the year. A Christmas Club Account is an interest-earning savings account that only requires a $100 minimum deposit to open. Look at what you spent on the holidays last year and set a target goal. Break that down by month or pay period and automate your savings throughout the year. At the end of October, you’ll receive a check for your account balance plus interest. Instead of scrambling after Thanksgiving, you already have your holiday fund saved up. This provides peace of mind and helps you avoid debt. Go into the new year in a stronger financial position than you did last year!
Monitor your progress with online and mobile banking
Your CS Bank Christmas Club Account comes with free access to our eServices. Check your account balance 24/7 with CSB.Online Banking to monitor your progress and stay motivated to keep saving. And, with CSB.Mobile, you can view your recent transaction and account balance, plus deposit checks directly from your smartphone or other mobile device. Receive a check you weren’t expecting? Put this “extra” money right into your Christmas Club account!
If you have a Kasasa Cash Back® Checking account, put your rewards into your Christmas Club account to help your savings grow faster. Don’t have a cash back checking account? Learn more about choosing a rewards checking account. If you’re able to use your credit cards without carrying a revolving balance, consider a rewards credit card as well. You can accumulate points or cashback throughout the year to use at Christmas time.
You get a check just in time for the holidays
When you save in a Christmas Club account, you’ll automatically get a check for the total balance plus interest. This arrives before November 1st, giving you a headstart on your holiday shopping. This has never been more important than this year when global supply chain and shipping issues have retailers urging shoppers to order gifts as early as possible. Plus, you have a separate lump sum to spend on gifts, decorations, entertaining, and travel. This is one of the best benefits of a Christmas Club account. No need to adjust your regular budget or try to find extra money to spend on the holidays.
Earn interest on your holiday savings
Christmas Club Savings accounts earn interest (up to a maximum balance of $5,000) just like any other savings account. In other words, you get paid to save your money for the holidays, increasing your total balance by November 1st. The interest rate on your Christmas Club account may even be higher than with a traditional savings account.
No service charges
CS Bank’s Christmas Club accounts are free savings accounts, meaning there is no monthly service charge to maintain the account. The only requirement is the $100 minimum deposit to open the account. However, it’s important to note that there are restrictions on withdrawing funds aside from the annual withdraw for the holiday shopping season. If you are also looking for a regular savings account that you can take money out of for emergencies or other goals, explore our complete list of savings account options or contact a bank representative for advice.
Open a Christmas Club Savings Account!
It’s never too early to start saving for next year’s holiday season. Find out why the Christmas Club is a longtime customer favorite. To learn more, fill out our online contact form or visit one of our convenient locations in Northwest Arkansas or Cassville, Missouri to start enjoying the benefits of a Christmas Club account today. At CS Bank, we are all about the community. Our objective is to be the "banking family" that people look for through our superior customer service.