Christmas club accounts 'are back in vogue'

The big Christmas build up is supposed to be a joyous period, but the fact of the matter is that it can be a nightmare for many households.

With plenty of people struggling to make ends meet at the moment, the last thing they need is to fork out for presents, food and drink they can ill afford.

The rising cost of living has eaten into many Aussies' disposable income and it has become much harder for people to put cash away in savings accounts as a lot of workers have nothing left once they have paid their bills each month.

However, an increasing number of people have been preparing for the festive period by opening a special Christmas club account, National Features reports.

These packages are generally offered by smaller, less established banks and are aimed at making it easier for Aussies to put money aside especially for Christmas.

Heritage Bank spokeswoman Jane Calder told the news provider the company had seen a ten per cent rise in the uptake of Christmas club accounts in the past few years.

"We have more than 17,000 of these accounts and most people tend to save regularly," she remarked.

"Most people tend to put between $15 to $20 a week away and have it set up as a direct credit from their savings or transaction account."

Teachers' Mutual Bank chief executive officer Steve James also revealed demand for the festive financial deals has been "slowly creeping up".

Many Christmas club accounts do not allow savers to access their cash until November at the earliest, as this removes the temptation for people to dip into their piggy bank prematurely.

That said, it appears that Aussie savers do not get enough credit for their ability to build up a nice pot of money.

Reuters reported last week that new figures released by the Australian Bureau of Statistics have indicated that people down under are putting more funds into their savings accounts than originally thought.

Have a question about savings accounts? Ask the money gurus at Mozo Answers.ADNFCR-1761-ID-801483118-ADNFCR