Banking: Nancy Holman

Tuesday, December 5, 2017

Q: What is the difference between a Christmas savings account and a regular savings?

A: Our Christmas Club savings accounts are for one year and do have restrictions on early withdrawals. The account is established to help you meet expenses during the Christmas season of the following year, so if you must withdraw from the account before the year's end, all funds are required to be withdrawn and the account closed. A regular share or savings account does allow withdrawals and deposits. Some savings accounts may penalize you if you make more than the stated number of withdrawals during a statement cycle. For instance, if your share/savings account provides for three withdrawals per month, but you make four, then your account will be charged a fee for the additional withdrawal. Unlike the Christmas Club account, this regular share/savings account remains open as long as a balance is maintained. Penalties and fees on account withdrawals can vary. Today is a great time to start your Christmas Club savings for 2018!