It’s great to have money stashed away to pay for all of those holiday gifts without running up big credit card bills.
That’s the advantage of joining a Christmas Club at your bank or credit union.
You make a deposit every month or sign up for a payroll deduction from every paycheck. You can start shopping, and making withdrawals, in October.
What’s not to like?
The lousy interest rates. Christmas Club accounts never pay very much, but they’re particularly Scrooge-like this year.
The University of Illinois Credit Union, for example, is offering a paltry 0.60% APY — and that’s the best deal we know of.
Most Christmas Club members will earn 0.10% to 0.25% APY.
We like almost any program that promotes savings through payroll deductions.
But for banks and credit unions to be promoting Christmas Club accounts with interest rates like these is just shameful.
(3 votes, average: 4.67 out of 5)
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