How Club Accounts Work and Why They are a Good Idea

Club accounts are special savings accounts that are designated for a specific purpose.  The most commonly known is the Christmas Club account, but at Midwest Members Credit Union, we also offer a Vacation Club account.

Christmas and vacations can be very expensive and difficult to manage without setting funds aside, and it is certainly not always easy to save money.  Club accounts can help by offering a dedicated spot to build a savings for a specific purpose.

There is no minimum amount required to open a club account.  You can add money at any time, in any way you choose.  Some people find that automatically debiting a certain amount out of each paycheck helps to build the savings in such a way that they do not even have to think about it.  The account grows with absolutely no effort.  Others like to put money away when they have extra, so the amount and frequency is not consistent.  You can choose whatever way that works the best for you.

The Vacation Club account can be withdrawn from twice a year.  Your money grows as you save.  Dividends are compounded and paid monthly.

The Christmas Club account also earns as you save, with dividends compounded and paid monthly.  The balance is automatically transferred to your regular savings account on October 31, leaving plenty of time to shop for all your holiday goodies. 

Making the choice to save money is always a good idea.  Planning ahead leaves you in a great position to get what you want without creating financial hardships that can be difficult to overcome. For more information, visit our website or call or stop in and see us.  We’re always happy to help!