My bank offers a Christmas Club account. I’m not sure what the interest rate is on it but I do know that you’re given one free withdrawal each year if you want to withdraw funds before November, and any withdrawals after that have a $5 fee. I TRY not to withdraw out of that account but in the past, unforeseen circumstances arose and we had to dip into it.
Our car registration now falls in January. So I worked out how much I need to put away weekly to cover the registration and I add it to the amount I put away for Christmas. By the time November comes, and the bank transfers the balance of my Christmas account into my everyday account, I have almost the full amount for the car registration.
It’s a great way to save for other events or purchase at that time of year and you’re less likely to dip into it because of the withdrawal charges.
