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#2035453 - 08/25/15 04:00 PM Christmas Club Accounts
BowlingQueen Offline
Power Poster
Joined: Mar 2007
Posts: 2,920
Wisconsin
Yes, we still offer them. crazy

Currently, in order to fund the account, the customer opts for a coupon book of a certain denomination ($5, $10, $20, etc.) with 50 weeks of deposits, OR the customer opts for automatic transfer from another deposit account with us. The automatic transfer amount and frequency is up to the customer then calculated and disclosed on the TISA.

Here is the dilemma: the bank wants to eliminate the maintenance of the machine that is used to print the coupon books, thus eliminating the coupons altogether. So, a couple of suggestions have been made: 1) require all deposits by automatic transfer from another account of the same owner(s), OR 2) use a regular savings deposit ticket with a special trancode for Christmas Club accounts. (I'm going to advise against funding from an outside source (i.e. payroll deduction), as allowing that will require us to send a monthy statement.)

Also, is there any reason why we have to "close" the club account when it matures and the funds are paid out? This has been our practice for years and it's quite the inconvenience to the customer to have to come in every year to open a new one.

I would appreciate any feedback or suggestions you all may have. Thank you!
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Deposits and Payments
#2035468 - 08/25/15 04:33 PM Re: Christmas Club Accounts BowlingQueen
BFrame Offline
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BFrame
Joined: Nov 2011
Posts: 401
USA
Our Christmas club accounts utilize the regular savings deposit slip with a special Christmas Club transaction code, as you mentioned.
Also, when checks are issued in October, the account is not closed. It's allowed to maintain a zero balance. Then the same account number is used to start deposits for the next year.
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#2035484 - 08/25/15 06:19 PM Re: Christmas Club Accounts BowlingQueen
Susielou Offline
Gold Star
Joined: Aug 2005
Posts: 343
Midwest
We require the funding account at our bank but still cut checks in October. I would really just like to put it all back in funding account but so far that isn't happening. We have always started the new club in November, but we are merging with another bank and they only start in January. I feel it is easier to help customers budget with the 12 month period but they want to spend $$ in Nov and Dec and start in January. We used to have coupon books many many many years ago!

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#2035517 - 08/25/15 08:58 PM Re: Christmas Club Accounts BFrame
BowlingQueen Offline
Power Poster
Joined: Mar 2007
Posts: 2,920
Wisconsin
Do you limit the deposits to be of a set amount and frequency so it reaches the maturity value? For example, a $5 weekly deposit over 50 weeks will be worth $250 plus interest at maturity. This is stated on the TISA.

How do you control that if you don't use pre-printed coupons/deposit tickets?
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Nothing changes, if nothing changes. (from a good friend of mine) smile

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#2035776 - 08/26/15 06:46 PM Re: Christmas Club Accounts BowlingQueen
Susielou Offline
Gold Star
Joined: Aug 2005
Posts: 343
Midwest
We set the transfers to automatically come out and the savings account is set up to receive "credits only" so that the customer doesn't take money out before October. We transfer it the end of each month and then we pay for the last individual payment. So if they chose to receive $250, then they would pay $245 and we would put the $5 in. We cap the amount to receive at $2,000.

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