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 A Christmas savings account can give you a much-needed financial boost during the holidaysHowever, before opening one, you should know what to expect. You should contact your local credit union to help you set up an account and start saving for the next holiday season this year. Until then, learn what a Christmas savings account is and how it can benefit you below. 

How Does a Christmas Account Work?

A Christmas savings account is a financial account that people open to help pay for expenses incurred during the Christmas season. The money deposited into the account earns interest to help pay for Christmas gifts, travel, and other expenses that arise during the holidays. Deposits aren’t restricted to the weeks leading up to the holidays and can be made all year.

You can discuss opening a Christmas savings account with a credit union representative. It’s important to ask what, if any, stipulations are in place for withdrawals. While you may be allowed to make deposits at any time, withdrawals may have restrictions. There may also be limitations on how much money you can deposit into the account. There may also be the option to link a checking account to your Christmas savings account. A credit union representative will explain all of this to you prior to opening the account.

Is a Christmas Savings Account Right for You?

imageA Christmas savings account has benefits for everyone, but you do need to be a disciplined saver. If you are a big holiday spender, but often fall short of funds before the season even starts, then perhaps this type of account will work well for you. You can deposit small amounts of your paycheck into the account throughout the year and leave it be until the holidays. If you need access to the funds before the holidays, a more traditional savings account may be best.

These types of accounts are also a great way to teach your children to be smart savers. They can use the money in the account to buy presents for their family, and designate how much to spend on each family member. 

 

If you’d like to open a Christmas savings account, contact Hawaii County Employees Federal Credit Union in Hilo, HI. This dependable credit union has provided their Big Island members with banking services for over 80 years. Services include automatic bill payments, 24/7 access to account information, and mobile balance updates. To learn more about membership, call (808) 935-2969 or visit their website.

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