In 1909, a bank in Pennsylvania created a special type of savings account that could be opened after the holidays. An account holder could add money to the account throughout the year, then receive a lump sum when the account matured the next Christmas season, just in time for Christmas shopping. So the Christmas Club savings account was started.
These were some of the down falls of the Christmas Club savings plan.
◦ Credit cards have added to the recent failure of the Christmas Club savings account.
◦ Penalty fees for early withdrawals for holiday shopping made this very inconvenient.
◦ Savings in a Christmas club account are taxable annually.
As we end another year and a few more things turn out to be obsolete. Just remember it was once upon a time that these things did exist and made our lives easier.
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