Christmas Club
A short-term savings account that usually pays out the full account balance to its account holders once each year, right before Christmas. These accounts pay depositors monthly interest on their account balances and often punish early withdrawals by retracting interest earned if money is taken out before a given date. Investopedia Says:
Because of the tremendous pressure put on people to save money for Christmas spending and the debt loads that consumers incur just before the holidays, many financial institutions offer their customers Christmas club accounts. Usually, Christmas club accounts offer systematic savings through automatic withdrawal upon deposit of paychecks to a checking account. Related Terms:
Checking Account
Consumer Credit
Early Withdrawal
Emergency Fund
Savings Account
Short Term
Term Deposit
Withdrawal |