Guides / Plan and save
Holiday club accounts: are they worth it?
An old idea that still works, if the terms are fair.
Some banks and credit unions offer "holiday club" or "Christmas club" savings accounts. You save a set amount through the year and the money is released in the fall. The structure is the point: it's harder to dip into.
Check the terms
- Is the account federally insured (FDIC for banks, NCUA for credit unions)?
- What interest does it pay, compared with a regular savings account?
- Are there fees or penalties for early withdrawals?
- When is the money paid out?
The do-it-yourself version
A separate high-yield savings account with an automatic transfer works the same way, often with more interest and more flexibility.
General educational information. Store policies and terms vary; check with the store. Dime Wise Club isn't paid by any store, bank or payment company.