What is a Savings Club Account?

If you’re thinking about new ways to budget for the holidays or another special occasion, a Savings Club Account might be the answer.
 

With the holiday season fast approaching, it’s time to start thinking about how you’re going to be funding family fun and gifts! Overspending is a concern for many people, with nearly 90% of millennials reporting that they overspent in 2023.
 
But with a Christmas club savings account, you can budget more effectively throughout the year. If you’re already set for your holiday spending, your savings account can be used for so much more, from vacations to weddings. If you’re thinking about new ways to budget for saving this year, we’re here to help.

What is a Savings Club?

A savings club is a special type of savings account, traditionally known as a Christmas Club, that can be used to avoid overspending during the holidays. Every paycheck, money can be automatically set aside so that come the holiday season, you have a savings pot full to spend on fun and gifts.

However, these accounts aren’t limited to the holidays. With a modern savings club account, you can set money aside for any planned expense. Whether you’re looking for a vacation savings account or need a new car, you can use these savings accounts to avoid the financial strain that large expenses can cause.

When you put aside money throughout the year, you know that when you need to finance something pricier, you have cash ready for you to withdraw. It’s one of the best ways to build a healthy savings habit and not have to worry about the future expenses you might face.

What Can a Savings Club Account Be Used For?

The most traditional expense people use a savings club account for is the holidays. Particularly if you have a large family or friend group you need to buy gifts for or you’re known for throwing the best holiday party in town, these accounts are a great way to save for the holidays all year long.

Another popular choice for these accounts is vacations. While you could take out a vacation or personal loan to cover these expenses, saving money can lessen the burden of taking on a large amount of debt. If you’re still planning to take out a loan for a bigger trip, a vacation savings club account can lower the amount of money you’ll need to borrow.

Weddings are exciting, but they can also be pricey. Setting a budget as early as possible will help you determine how much you can afford to spend on your big day or find areas where you need to save for the upgraded version of whatever you’re looking for. Using your savings club account for a wedding can be a good way to routinely put aside some money to increase your wedding budget and earn interest at the same time.

If you’re in the market for a new car, an auto loan can help finance your vehicle, but you can also take advantage of a savings account to pay your down payment and take out a lower loan amount. Particularly if you’re planning to buy from a dealer, you’re more likely to get a better deal if you have more money to put down upfront or pay for your car in full with cash.

You can also use your savings club account for new appliances, minor home renovations, or any other splurges or extra expenses. If you don't know what major expenses you may need in the future, that is okay! Opening an FNBT Four Seasons savings account today is a good place to start. Simply put money aside now, and when you are ready, use the money however you’d like!

Major Benefits of a Savings Club Account

The benefits of holiday savings club accounts can vary from bank to bank, but with FNBT, you’ll get a range of benefits that help you save more.

You’ll build savings throughout the year, so hitting a bigger savings goal feels more manageable. Instead of scrambling to find the money you need during the holidays or for your upcoming vacation, you already have this savings account set aside for exactly this purpose.

You can easily check your account balance and monitor progress throughout the year to see how close you are to achieving your savings goal. You’ll also earn interest on your savings to help you get closer to your goal faster.

With a Four Seasons account, you won’t have any monthly fees, and you can also make unlimited deposits throughout the year. Choose an annual disbursement date based on what works best for you and your goals.

Savings Club vs. Emergency Savings Account

A savings club and an emergency savings account may seem similar since you’re putting money aside for possible future expenses that are outside the norm. Emergency savings, though, should be used for costs considered true emergencies like unexpected medical bills, a vet bill, a broken appliance, or losing your job.

Savings club accounts should be used for fun expenses that you’re already planning for the future. It’s also important to remember that you have a restricted number of withdrawals on a savings club account, which isn’t as helpful if you need to access money for emergencies at short notice.

Why Consider a Savings Club Account

Aside from the benefits of a savings club account, they can also be a good addition to your overall savings strategy. When you’re putting money into different types of accounts, you can maximize the interest you’re earning and plan for both the expected and unexpected financial situations that may come up.

If you’re looking for more ways to save money this year once you’ve reassessed your budget and cut some of your expenses, you can use your savings club account to put some of those savings into throughout the year. This type of account may also be good for an unexpected tax refund. Put your refund into a savings account for a year and earn interest for a vacation or your holiday fund.

Join a Savings Club with a Four Seasons Savings Account

It’s easy to open a Four Seasons savings club account with FNBT. Stop by a convenient location to open your new account today. Choose the right payment season that works best for you and start saving towards your financial goals. FNBT is always here, serving the communities of Beloit, Clinton, Darien, Delavan, Elkhorn, Janesville, Monroe, Argyle, Walworth, or Williams Bay, WI and Rockton, Roscoe, and Winnebago, IL.