Club Accounts

You might remember your mom contributing to a Christmas club savings account in the 1970s or 1980s. These club accounts were designed so families could set aside a few dollars from each paycheck for the holidays. While this type of savings club might seem retro, mobile banking brings the club account into the future with regular contributions to your savings to keep your funds growing.

Holiday presents might still be your savings goal, but the sky’s the limit. While many large banks have discontinued club accounts in favor of money market or other types of savings accounts, customers often find that credit unions still offer this service. In fact, the industry’s Credit Union National Association reports that the majority of credit union customers can open savings club accounts through their institution of choice.

With some basic math, you can quickly calculate the benefit of enrolling in this type of program. Let’s say you hope to have $15,000 saved for a down payment on your first home, and you want to meet this goal within 24 months. By opening a club account with an automatic transfer of $625 a month, the money will be waiting in your online banking account when you’re ready to buy a home.

Most people treat savings clubs as short-term accounts to set funds aside for goals they want to meet within a year or two. However, from a Christmas club to a vacation vehicle, there’s no limit to the ways our customers use these convenient accounts.

Setting aside a certain amount of money each month prevents second-guessing yourself when it comes to saving. The funds will be out of sight, out of mind, which means you will be significantly less likely to divert them to bills or other expenditures.

You’ll also be participating in the time-honored strategy of paying yourself first. Simply put, you’re setting money aside for your future before you pay any other bills. You’ll get in the habit of saving so you won’t fall into the common trap of spending more money than you make, which can quickly lead to high-interest debt.

If you often find that you have trouble spending your savings on the designated goal, establishing a specific Christmas club or vacation club account might help you break out of that mental framework. By saving for vacations, gifts, or other fun items on a regular schedule, you’re giving yourself the freedom to splurge once in a while!

When you open a savings club account with American United Federal Credit Union, you’ll never pay fees or have minimum balance requirements to meet. With direct deposit or automatic payroll deduction, you’ll be setting aside funds to meet your goals without a second thought.

We do not require a minimum contribution to our savings clubs; you can set aside as little as five dollars or as much as $5,000 a month, depending on your wealth management goals.

You’ll also take advantage of a generous 0.100% annual percentage yield. If you have a minimum balance of $25 in your club account, you qualify for dividends on your savings.

Unlike some credit unions, you won’t be subject to an early withdrawal penalty if you take funds out of your savings account before meeting your goal. Members can take advantage of unlimited deposits and withdrawals.

Many clients report that vacation clubs and similar accounts prevent them from using credit cards and paying high-interest debt. Experts also tout the behavioral benefits of automating your savings rather than remembering to transfer funds to set aside each paycheck.

You will receive an itemized statement every quarter, so you can easily keep track of your savings progress. In fact, with free online banking access, you can check on your savings balance day or night, no matter where you are.

To open a savings or Christmas club account with us, start by applying for membership. First Californian Credit Union welcomes members who work, live, go to school, or worship in California. You can also join as a family member of an existing credit union member. Contact us today to learn more about banking with us.