Imagine this. It's early December, and you've made your holiday shopping list only to realize you don't have enough saved in your account to cover everything on your list. Now you're stressing out and wondering what to do. Should I use my credit card, take out a loan, or pull from another expense or bill from my budget? You can avoid a moment like this with a Christmas Club account.
Between buying gifts for loved ones, decorations, food, and other related expenses, the holiday season can be one of the most expensive times of the year. According to the National Retail Federation, Americans will spend an average of $1,000 this year on holiday spending. Having a budget and a way to save will help you prepare and control your holiday spending without putting a strain on your wallet. It's never too early or too late to establish a Christmas Club account to put your mind at ease.
What's a Christmas Club Account and how it works?
A Christmas Club account is a savings account that allows you to save throughout the year for holiday spending. The amount you've saved in your Christmas Club account will automatically transfer to your AllSouth Membership Savings account during the first week of November. You can then use the money you've saved for your holiday shopping.
It can be challenging to remember to deposit money into a savings account each month on your own, but with a Christmas Club account, you can have the funds automatically deposited weekly, bi-weekly, monthly, or quarterly into your account. You choose the amount you want to contribute, and it automatically deposits into your account.
Benefits of Christmas Club Account
You'll have peace of mind knowing that this account is working for you. There are many benefits that a Christmas Club account offers.
Dividends are earned monthly on the average daily balance
Minimum initial deposit to establish the account
No monthly maintenance fee
Allows you to save throughout the year
Helps you avoid credit card debt
Flexibility to use this account to save for a vacation or a major purchase.
Reduces the chance of overspending and the stress of not having a savings holiday spending
With a Christmas Club account, your funds are available anytime. However, suppose you withdraw from this savings account early. In that case, a fee may be imposed for early withdrawal, which is even more reason to keep your money in the account until you can withdraw without the fee.
Whether you open a Christmas Club account or use another savings method, the important thing is that you're planning and saving for the festive season. Any savings account is a step toward financial security and can take a load off your mind. Start saving today for next year's holiday shopping and imagine how happy your future self will be.