Tis the holiday season and as we embrace the holiday spirit it’s very easy to get stressed out not only trying to find the perfect gift for everyone on your list, but also figuring out how to pay for it without blowing your budget to pieces! We’ve all heard of stores like Wal-Mart, Target, and Toys R Us who allow customers to use Lay-a-way system ( a method of purchasing by which the purchaser reserves an article with a down payment and claims it only after paying the full balance) at Litchfield Bancorp we have a Lay-A-Way for savings, our Club Account or Christmas Club as we like to call it!
These accounts were a huge hit back in the 70’s and they are making a comeback. I don’t want to age myself, but I remember by mother going to the bank and faithfully depositing a few dollars each week into her Christmas Club account. Every October, we’d take a trip to the bank to collect those savings and start the process over again. Because the weekly deposits were so small, the money was rarely missed and it allowed my parents to put away money all year for holiday spending!
Tradition is important to us at Litchfield Bancorp, and the Club Account is one of those traditions we are proud to keep – there’s something nostalgic about it. The process is still the same as it was 40 years ago. You can deposit as little as $1 a week into your Christmas Club Account, vary the amount week to week, and as long as your daily balance remains above $5 – you earn a little interest. One BIG change from the 70’s though, is now the process can be automated. You can have funds directly deposited into your Club account each week. It really is the Lay-a-way plan that you control, and it doesn’t get much easier!
Did you know that the average American spends about $700 on gifts or travel during the holiday season? With the Christmas Club, you only need to deposit $14 a week to meet your goal! And you don’t have to use the Club account just for Christmas – you can use it to save for a vacation, new appliance, or even a down payment on a new car. The possibilities are endless!
While you won’t make a killing on compound interest, there are some great financial perks to setting up a Christmas Club Account:
- It’s a great way to safeguard your money — from yourself — so you have the funds to buy gifts or travel during the holidays.
- It prevents you from starting off the year with a pile of new debt.
- You won’t be able to withdraw money from the account until the end of the Club savings period – typically the end of October. You can stop in and pick up a check or have it automatically deposited into your checking or savings account.
- You can start a Club account at any time and there is no monthly service charge.
It might be too late to start saving for the 2017 holiday season, but it’s a great time to start saving for 2018! Stop in to one of our branches today and let the season of savings begin!
Vice President, Lakeville Manager