The terms “holidays” and “less stress” rarely appear together, but we think we’ve found a way to make these two work together. A Holiday Club Account from Space Age Credit Union may be the exact solution you’re looking for if you’re concerned about the financial impact of holiday shopping.
Let’s face it. We know the holidays come around once a year like clockwork, yet our finances never seem to get the memo until right beforehand. Many of us put off shopping until closer to time, but this can create a tremendous burden on finances. A Holiday Club Account addresses this issue, so you’re not stretching your monthly budget to its breaking point.
What is a Holiday Club Account?
A Holiday Club Account from Space Age Credit Union is a savings account option that allows you to set aside funds earmarked for holiday spending. It only requires a $25 minimum balance to open and maintain throughout the year. You can contribute at any time (perfect when you receive a tax refund or unexpected windfall) and you can set up recurring withdrawals.
Unlike other savings accounts with low earning potential, this account enjoys a higher annual percentage yield, or APY. It will have at least a .25 percent higher APY compared to our Primary Share Savings Account. This means you can enhance your savings potential and earn even more that you can put towards holiday spending.
How Does a Holiday Club Account Work?
As long as you maintain at least the $25 minimum balance, the dividends from the savings account will be compounded monthly and added to your monthly balance.
On the first business day of November, your entire Holiday Club Account balance (including earned dividends) will automatically transfer to your linked checking account. Yes, you could withdraw the funds earlier, but doing so would incur a large withdrawal fee, giving you further incentive to hang on to your funds until November.
Once you receive your transfer, you can shop without the stress of wondering how you’ll pay for gifts this year!
Benefits
Maintaining a savings account throughout the year solely dedicated to holiday spending has multiple benefits, including:
● Encourages consistent saving throughout the year
● Breaks the spending into manageable monthly deposits
● Reduces the need for credit cards during the holidays
● Helps avoid holiday-related debt
● Provides a clear, dedicated purpose for the savings
● Pays dividends or interest on saved funds
● Delivers a lump sum right when holiday expenses peak
● Makes budgeting for gifts and travel easier
● Reduces financial stress during the holiday season
● Keeps holiday money separate from everyday spending
Dropping the financial stress and opening a Holiday Club Account through Space Age CU is a simple process. Stop by and apply in-person, or apply online here.
