HomeMedia & ResourcesMedia ReleasesSave now for next Christmas – Australians urged to look to the past to save for their future

Save now for next Christmas – Australians urged to look to the past to save for their future

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As Australians receive their credit card statements from December or look at their ‘buy now pay later’ debts, customer owned banking institutions are reminding Australians to look beyond credit next year.

Rather than face the same ‘Groundhog Day’ next year, Australians are being urged to open a Christmas Club account offered by Australia’s customer owned banking institutions.

Unlike a regular savings account, Christmas Club accounts only allow people to access the funds during a specified time during the year – typically November or December – while putting money away throughout the year.

With regulators tightening credit card lending at the beginning of the year, many Australians may find it harder to get access to credit as Christmas 2019 rolls around. Others may be trying to keep to their new year resolution of staying away from ‘buy now, pay later’ schemes.

Christmas club accounts have been in Australia since the 1970s and have remained true to their original purpose of helping consumers manage their financial wellbeing by managing the ‘lumpy’ expenses of the festive season.

Adelaide mother of two Danielle Smith has been using Christmas Club accounts with Beyond Bank Australia and loves the way it helps her manager her finances.

Customer Owned Banking Association CEO Mike Lawrence said Christmas Club accounts were one of many ways that customer owned banking institutions put customer interests first.

“Christmas club accounts are clearly a customer focused product that helps customers plan ahead and manage their financial wellbeing.

“These accounts have been a very popular product when there was a stronger savings culture.

“We are keen to see a new generation of customers, particularly younger people that are attracted to ‘buy now, pay later’ schemes, consider alternative ways to manage Christmas.

“If you put $15 a week away in a Christmas Club account today, you’ll have more than $700 to spend when the holiday period rolls around.

“The accounts are typically fee free and offer bonus interest rates. In most cases, interest is paid into the account at set times throughout the year so you can enjoy the magic of compound interest, as well as the magic of Christmas.

Beyond Bank Australia General Manager of Customer Experience Nick May says the Christmas Club account has been a particularly popular product with their customers.

“The Christmas Club account has been really popular with our customers over a long period of time because it allows you to save a small amount each pay period with the intent that by Christmas you have enough in there to buy all those presents.

“It’s a way of not getting caught short at Christmas. Present buying time rolls around so fast – if you haven’t started saving early it's near impossible to buy all those presents from one pay packet.

“The no access period during the year is a really good way to force you to save. Just $50 a fortnight can give you a really good Christmas budget.”

For more information please contact:

Mick Gibb

Corporate Affairs Manager

0423 149 494

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Ashley Penny
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