10 Practical benefits of a holiday Cash Club account

Personal finance matters a lot for arranging necessary funds for personal and family occasions. A holiday Cash Club account is a great way to ensure the best of personal finance when it comes to finance your Eid, Christmas, Holiday spending properly.

What is a holiday Cash Club account?

Holiday cash club account or Christmas Club Account or Vacation Club Account is a special type of saving account intended for the holiday expenses/shopping. You deposit usually automatically throughout the year and get to your desired account during the holiday. It reduces the tendency and dependence on credit card debts.


  1. Competitive interest/profit/dividend rate.
  2. Usually no requirement for minimum deposit
  3. Usually, dividends compounded daily and paid monthly
  4. Multi-channel deposits are allowed through any of our service channels
  5. Payroll Deduction or Funds Transfer may be used
  6. Usually no service charges
  7. Same account can be used for the next years
  8. Goal based savings
  9. Premature withdrawal is discouraged
  10. Celebration financing made easy

History of Club Accounts

The first ever Christmas Club account was offered by the Carlisle Trust Company in 1909. The then innovative treasurer of the company, Merkel Landis, was the man behind the club with roughly 350 members. Each member contributed an average of $28 to their accounts.

Later, such accounts were very popular among the Americans during the 1960s and 1970s. However, the popularity and appeal of the accounts have reduced substantially over the years.

How Club Accounts Work?

Club account participants deposits an amount usually equally each month. Such deposits are generally automated from the payroll or transferred from another account. At year end/maturity, the total amount is transferred to the main accounts of the participants.

The disbursement is usually occurs in first of November and saved until October. However, based on the occasion, the time may vary as per the agreement.

Benefits of Club Accounts

Club accounts or Christmas Clubs play a vital role in the management of personal finance and budget. It is a great tool to plan the vacation or shopping beforehand without taking the extra pressure from large bills. Some of the benefits are written below:

  1. Cash Management: Club accounts make your cash management easy and comfortable. You can manage your cash for both short-term and long-term expenses.

2. Budgetary control: If you participate in such account, your budget management is alright. You save for the large expenditures and do not deviate from the budget to finance the vacation.

3. Peace of mind: As the required fund gets accumulated over the time, you can enjoy the peace of mind without any uncertainty.

4. Saving tendency: Participating to such accounts will create a sense of saving tendency. You will be accustomed to saving few bucks every time you are making some money.

5. Frugality: When you are a part of any club account, you are expected to lead a frugal life. Being frugal does not mean being a miser. Frugality ensures the best possible use of your resources.

6. Debt-free life: Vacations and occasions are obvious in life and they definitely require a lot of fund to handle. You are prone to get in debt trap if there

7. Planned expenditure: As you are saving a specific amount, it is very easy for planned expenditure. You are set to spend the saved amount and avoid any temptation and excitement.

8. Happy family: A great holiday/Christmas means a family happiness. Your single decision creates the opportunity for a great family bondage and happy feelings every time you get paid and spend for the occasion.

9. Forced Savings: Once you are decided and participated, you are set for the forced savings. It is great to save even if it is a forced savings.

Good Credit Score: As you are saving more and taking less loans, your credit score is sure to grow positively. You are at ease to avail any debt in the time of necessity.

Considerations for holiday cash club accounts

Some of the issues must be taken care before participation in the club accounts. Some of them are presented below:

  1. Your interest rate may be less than other accounts
  2. You may be penalized for early or premature withdrawals
  3. It does not guarantee that all your expenses will be covered
  4. The fund may not be as efficient as you think
  5. Look before you leap. Do not commit so much savings that you can not afford.

Club Accounts in Bangladesh

Many banks in Bangladesh provides club accounts to some extent in the form of traveler’s savings under their retail banking services. Some banks provide travel cards at the maturity with more exciting offers for the vacation club account participants.

FAQs on holiday Cash Club account

Can you withdraw money from a holiday club account anytime?

Depositing money into your holiday/Christmas club accounts is permitted anytime but withdrawal is usually between November to January or agreed during the start of accounts. Still, you may withdraw anytime with the permission from the authority. In most of the time, premature withdrawal charges penalty, cuts interest etc.

What type of account is a club account?

A club account is an interest-bearing savings account in nature. The rate is not always very exciting but if you withdraw after the maturity, you will not be disappointed.

The last words

Human life is colorful with occasions, vacations and celebrations. You may not always be ready to enjoy the occasion with sufficient funds. Holiday Cash Club account is a great solution to the problem that takes deposits over the year and pays you when the fund creates the memorable moments for you.

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