At the Franklin County Federal Credit Union in Farmington, Maine, the Christmas club earns a little less interest than the regular savings accounts, says Peggie Webber, a member service representative.
Members can start their accounts anytime during the year and put in any amount they want.
But the only way they can get the money out early is to close the account. Otherwise, the money is transferred into their regular savings account on Nov. 1. In Redmond, Wash., the Qualstar Credit Union Christmas club account earns 3.2 percent, a slightly higher interest rate than a regular savings account, says marketing director Tracey Woods. About 5 percent of Qualstar's members have Christmas club accounts, Woods says. Members get their checks mailed to them on Nov. 1 or they can have the money deposited into their checking or savings account.