Holiday and Vacation Clubs

            Holiday and Vacation clubs are savings accounts.   A Holiday Club is set up before Christmas and runs for a year.  You choose the amount you want to save each week and the bank gives you a payment book with tear off tickets in it for each of those weeks.  Each week you bring your payment to the bank with the weekly ticket and the bank saves your money for you.  People use these when they want to make saving for Christmas or a vacation  easier for themselves.  The bank pays you interest, which usually equals one payment, when the club is over.  You get a check for all of your savings plus the interest at the end.  The same thing happens with the Vacation Club except those clubs start right before summer begins. 

            These clubs began during the Great Depression when people didn’t have much money.  The clubs have helped many people save for these costly yearly expenses ever since.  Holiday shopping and vacations cost a lot of money.  If a little money is saved each month, it is a whole lot easier on your budget than coming up with the whole amount in December.   The same goes for vacations.  

 Citations:

“Christmas club.”  26 Feb. 2009.  <http://en.wikipedia.org/wiki/Christmas_club>.