Okay, you may be reading this article and groaning, either at the word Christmas or the fact that it may not be anywhere near that time of the year! However, considering the timescale of the months many of us need to save for this most extravagant of occasions realistically, there has never been a better time to raise this question!
Where to Find Such Accounts
Perhaps you won’t find such accounts advertised hugely at banks, but Christmas savings Accounts can be found or requested mainly at those smaller of local bank and credit unions. They are usually referred to as a Christmas Club Account. Yet, for those who still can’t access such accounts, there is always the option to open a regular savings account which you can then use as your specific holiday savings account.
What Should You Set Aside for This Account?
Every budget and circumstance are unique, and this will determine how much you put into your Christmas Savings Account every month. However, you will do this better if you commit to a specific amount. One way to look at doing this is to remember how much you spent on the last Christmas.
This figure should then allow you to divide that number by 12 and come up with a monthly value as to the best amount to put away each calendar month.
The Advantages of Such A Savings Account
Apart from not being able to see and spend this money throughout the year, there are other benefits to opening a Christmas Savings Account including:
- You can transfer your regular amount and perhaps any extra into it automatically.
- You can ensure a level of protection for your Christmas budget by making this money challenging to get to, except just before Christmas.
- You can separate such money from other savings accounts, making monitoring easy all year round.