How Starting a “Christmas Club” Could Save You (and Your Wallet) This Holiday Season

Investing News
admin
June 25, 2025
0
5
6 minutes read

" title="

How Starting a "Christmas Club" Could Save You (and Your Wallet) This Holiday Season

Fact checked by Betsy Petrick

You might have the best intentions about sticking to a budget, but when the holidays roll around, all bets are off. If you’re determined to do things differently this year, make a plan to save early and often—a Christmas Club account is a great option. In the past, Christmas Clubs were a popular type of savings account, and you can still find them at many local credit unions and financial institutions. We’ll explain how opening one of these savings accounts can help you stay on track, so you’re financially prepared come December.

Key Takeaways

While you could save for the holidays by funding a high-yield savings account, many financial institutions also offer Christmas Club savings accounts.
To open a Christmas Club account, find a bank or credit union that offers one, submit an application, set an end date, and make monthly deposits. You can withdraw funds at the end of the term.
Most large banks don’t offer Christmas Club accounts, but credit unions and community banks usually do.

What Is a Christmas Club Account?

A Christmas Club is a type of savings account where you make monthly contributions. Then, a month or two before the holidays, you can withdraw the funds to use for holiday purchases. Although Christmas Club accounts have been around since 1909, they’re not very common now. Many people prefer to use savings accounts or charge purchases to a credit card.

However, Christmas Club accounts can be helpful in sticking to a budget. Once you open an account at a community bank or credit union, you make monthly contributions and wait to withdraw the funds until a pre-determined date, usually in October or November.

Instead of going into debt every holiday season, using a Christmas Club account allows you to shop using money you’ve already set aside for that purpose.

Note

You can use your Christmas Club funds any way you want. For example, you could open an account to save for an upcoming vacation.

How to Open a Christmas Club Account

First off, find a local or online credit union or other financial institution that offers Christmas Club accounts. Note that some credit unions require you to be a member to open any type of account, but the cost to join is typically miniscule.

If you’re considering several Christmas Club options, compare account features to find the best one for you. For instance, some accounts earn interest or give you flexible deposit options, while others offer automatic deposits at the end of the term or give you free transfers.

Once you’ve found a Christmas Club account, submit an application and make the minimum required deposit. You’ll also have to set up automatic payments (that are usually paid out from a credit union checking account). Then, just fund the account until the end date (when you receive the funds).

Tips to Get the Most From Your Christmas Club Account

It’s easy to open a savings account and completely forget about it. To ensure you get the most value out of your Christmas Club account, try implementing a few of these strategies:

Make a budget for how much you expect to spend over the holidays.
Set a savings goal (so you know how much to contribute every month).
Open your account early so you have plenty of time to fund it.
Automate your deposits so you don’t forget to make them.
Check your account balance every month and make catch-up deposits if needed.
Learn about early withdrawal fees, and don’t take out your funds before your account’s end date.

The Bottom Line

Although Christmas Clubs aren’t as common as they once were, the underlying concept remains. Plan ahead and save before the holidays so you don’t go into debt from gift-giving. Christmas Clubs make it easy to automate saving so you can enjoy the season without the stress of paying for it.