Christmas Club

Posted By: MadisonCali

Christmas Club - 08/17/06 03:00 PM

Hello!

I've worked at a couple of banks, and have never heard of a Christmas Club account before BOL.

Quite a few people talk about them, and I was just wondering if someone could give me a brief description of what actually makes an account a 'Christmas Club' account.

Did I mention how much I love the 'Newbie Nook'?
Posted By: ahou

Re: Christmas Club - 08/17/06 03:32 PM

It is a separate account that is used by a customer to save for Christmas, with the funds usually dispersed in Nov. (one withdrawal) Christmas Clubs can be interest bearing or non interest bearing - I've seen both. Withdrawals by the customer are not usually allowed (the bank makes the one withdrawal in Nov) My bank auto drafts the customer's cking acct each month for whatever amt they wish.
Posted By: Don_Narup

Re: Christmas Club - 08/17/06 03:49 PM

Accounts are usually set up the first of the year often for specific amounts like $500.00. Some institutions issue coupons that are used by customers to make a monthly payment to their club account, or an account is debited for the amount that will cause the Club account to have the specified balance in it by end of November. The bank then clears out the club account at the end of the year by sending out a Holiday check.

There are Vacation club accounts as well. Its a way to increase savings deposits, and convenient for customers. It's a great way for a person to have the cash to handle Christmas or a vacation .
Posted By: BurntSienna

Re: Christmas Club - 08/17/06 04:26 PM

I love the Newbie Nook, too!

The bank I work for has Christmas Club accounts, and this is a new concept to me, also. Here's what I've learned since I discovered the existence of these and asked for an explanation recently. For NEXT year Christmas, a Christmas Club (savings) account can be opened the first week of November, 2006, for disbursement of the funds at the end of October, 2007. It's intended to be a sort of holiday gift shopping savings account. Each week, the customer makes a contribution of (for example) $10.00, for 39 weeks. If/after they make all 39 contribution payments, our bank makes the 40th week's contribution for the customer, and then cuts the check for $400 to the customer in late October.

I think it's a neat idea, and I'm going to open one myself this November 1st!
Posted By: MadisonCali

Re: Christmas Club - 08/17/06 04:29 PM

Thanks, everybody!
Posted By: DeeQ

Re: Christmas Club - 08/17/06 04:35 PM

I think that most banks have done away with the coupon method and now use a passbook system, that is reusable every year.

Gosh, I remember 20 years ago having to prove those club coupons and cards every month... now I feel old.