If saving money doesn’t come easy to you, why not join a club? We’re not talking about a formal organization with a clubhouse and special amenities. Think more along the lines of a Club Account offered by a bank or credit union.
A longtime staple in the savings world, a Club Account is basically a short-term savings account used to save money for a particular purpose or goal. These types of accounts were initially introduced in the early 1900s, in the form of “Christmas Club Accounts” which were aimed at helping people save up for the holidays. Banks and credit unions later extended this concept to vacations as well, creating Vacation Club Accounts as a tool to help their customers save for vacations.
Today, Club Accounts are used to save for more than just vacations and holidays. At BankFive for example, you can set up a Club Account for just about anything. Maybe you want to save for a wedding, afford a bathroom remodel, or save up for a down payment on a house. Whatever your objective, having a bank account dedicated to one specific goal can help you stay focused on it, and help you achieve it.
Club Accounts can be a good fit for someone who has difficulty stashing away cash for future use. And, they can make it easier to effectively budget and earmark funds for a specific purpose. If you have all of your savings sitting in one Savings Account, you may find it difficult to keep track of which money is for which goal. But with a Club Account dedicated to one specific goal, you’ll know exactly what the money in the account is for. For example, if you find yourself stressing about holiday shopping and affording gifts every December, a Christmas Club Account can help you stash away money each month leading up to the holidays. Or, if you’ve always fantasized about taking a luxury cruise or traveling to an exotic destination, a Vacation Club Account can help you save for your dream vacation and turn it into a reality.
It’s important to note that with some Club Accounts, there is a penalty for withdrawing money prior to a certain date. This is aimed at deterring customers from taking money out of their account before their goal is reached. But some banks do not impose a penalty for early withdrawal from a Club Account. Whether you prefer a penalty-free account, or one that discourages against withdrawals by charging an early withdrawal fee, just be sure to review all of the terms and fine print associated with the account before opening it – that way there will be no unpleasant surprises down the line.
No matter what you decide to save for, a Club Account can help create a more disciplined attitude toward saving. And let’s face it – watching your goal become a reality is sure to put a smile on your face as well!
A longtime staple in the savings world, a Club Account is basically a short-term savings account used to save money for a particular purpose or goal. These types of accounts were initially introduced in the early 1900s, in the form of “Christmas Club Accounts” which were aimed at helping people save up for the holidays. Banks and credit unions later extended this concept to vacations as well, creating Vacation Club Accounts as a tool to help their customers save for vacations.
Today, Club Accounts are used to save for more than just vacations and holidays. At BankFive for example, you can set up a Club Account for just about anything. Maybe you want to save for a wedding, afford a bathroom remodel, or save up for a down payment on a house. Whatever your objective, having a bank account dedicated to one specific goal can help you stay focused on it, and help you achieve it.
Club Accounts can be a good fit for someone who has difficulty stashing away cash for future use. And, they can make it easier to effectively budget and earmark funds for a specific purpose. If you have all of your savings sitting in one Savings Account, you may find it difficult to keep track of which money is for which goal. But with a Club Account dedicated to one specific goal, you’ll know exactly what the money in the account is for. For example, if you find yourself stressing about holiday shopping and affording gifts every December, a Christmas Club Account can help you stash away money each month leading up to the holidays. Or, if you’ve always fantasized about taking a luxury cruise or traveling to an exotic destination, a Vacation Club Account can help you save for your dream vacation and turn it into a reality.
It’s important to note that with some Club Accounts, there is a penalty for withdrawing money prior to a certain date. This is aimed at deterring customers from taking money out of their account before their goal is reached. But some banks do not impose a penalty for early withdrawal from a Club Account. Whether you prefer a penalty-free account, or one that discourages against withdrawals by charging an early withdrawal fee, just be sure to review all of the terms and fine print associated with the account before opening it – that way there will be no unpleasant surprises down the line.
No matter what you decide to save for, a Club Account can help create a more disciplined attitude toward saving. And let’s face it – watching your goal become a reality is sure to put a smile on your face as well!