Could Christmas club accounts be a savings option for 2021?

A woman wearing a stripy T-shirt sits at a desk, looking at a laptop.

Now you might be thinking it’s February, why are we still talking about Christmas? Well we’re not really, more a nifty way to save money. In fact, one that the Customer Owned Banking Association (COBA) is encouraging Aussies to think about in 2021.

What is a Christmas club account? 

In a nutshell, a Christmas club account is a way to save money throughout the year in preparation for the holiday season. The idea is that you deposit a little at a time and only have access to it all at Christmas, when you need it.

This type of account has been around for over 100 years, according to COBA. However, has become less popular of late with more ways to buy on credit coming to the fore.

COBA chief executive Mike Lawrence says, “With the rise of buy now, pay later schemes, we’re seeing a younger generation develop an appetite for credit culture.” 

He warns users of such schemes against impulse buys and the rapid accumulation of debt.

Which banks offer Christmas club accounts?

Despite becoming less popular in recent years, there are still a number of banks and credit unions that offer Christmas club accounts. These include:

  • Bendigo Bank
  • Gateway Bank
  • Heritage Bank
  • IMB Bank
  • The Mutual Bank
  • Woolworths Team Bank

Bank Australia also has a version of this called the Christmas Saver Account. With most of these types of accounts you will be able to access your money between the beginning of November and the end of January.

Can I earn interest on a Christmas club account?

Yes, you can usually earn some interest on a Christmas club account. That said, as interest rates for savings are low all across the board right now, it probably won’t be that much. Interest rates can range from as little as 0.10% p.a. to as much as 1.00% p.a. for these types of accounts.

Other savings options

If a Christmas club account doesn’t appeal to you, you might be interested in a term deposit instead. With a term you can lock money away for as short as one month to as long as five years. 

Or if you’d rather have your money somewhere you can access it, why not think about getting a savings account. Head over to Mozo’s compare savings accounts page to see what options are available in Australia right now.

Compare savings accounts - last updated 5 December 2023

Search promoted savings accounts below or do a full Mozo database search . Advertiser disclosure
  • Mozo Expert Choice Badge
    Savings Account

    5.50% p.a. (for $0 to $250,000)

    4.75% p.a.(for $0 to $1,000,000)

    Yes up to $250,000

    Bonus variable rate is available for the first four months.

    Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.

  • Reward Saver Account

    5.25% p.a. (for $0 to $1,000,000)

    0% p.a.(for $0 and over)

    Yes up to $250,000

    Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.

    Introductory bonus rate for balances up to $1,000,000 for the first 4 months. Minimum deposit of $50 and no withdrawals. Start your account online in under 10 minutes and earn interest on balances up to $1,000,000 (T&Cs apply). No monthly account fees, helping you save smarter and faster.

  • Reward Saver

    5.25% p.a. (for $0 to $100,000)

    0.30% p.a.(for $0 and over)

    Yes up to $250,000

    Earn a high interest bonus rate if you hold an eligible transaction account and meet the bonus rate conditions (T&Cs apply). Only requires $1 to open. Free e-banking transactions. No monthly service fees to pay. Access your account via e-banking or the Bendigo Bank app. Not applicable to business customers.

  • Mozo Expert Choice Badge
    High Interest Savings Account

    5.75% p.a. (for $0 to $250,001)

    4.40% p.a.(for $0 to $250,001)

    Yes up to $250,000

    Bonus rate for the first 4 months from account opening

    Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account . Receive the maximum rate when you grow your balance by at least $200 each month. No Account keeping fees. No minimum balance.

  • High Interest Save Account

    5.10% p.a. (for $0 to $250,000)

    0.10% p.a.(for $0 and over)

    Yes up to $250,000

    Deposit at least $200 to either Spend or Save account from an external source each month.

    No monthly fees on any of your save accounts. Split your money with up to 10 Save accounts. Set savings targets and track the progress of all your Save accounts. Deposits guaranteed up to $250K per customer.


^See information about the Mozo Experts Choice Savings Account Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.