Vacation club at the bank

[Hillbeans]

Does anyone have a "vacation club" set up at their bank or credit union? After much discussion last night my DH and I decided we'd love to stay at the Poly next spring and I thought a vacation club would be the way to go.

What are the rules? Are the perks of the actual "vacation club" better than just putting aside $50 a paycheck in a separate account?

Thanks!

 

[gdulaney]

Many yrs ago I had a Christmas Club account, which is along the same lines. You make a deposit and at the end of the period, you've save X number of dollars. This is a good way for some folks to save money, but most Christmas Club accts (and vacation club accts) don't pay interest.

You are absolutely right, you could do the same thing by putting money in an envelope... or if you're worried about spending it (readily available cash is always tempting ), you could determine how much $$ you wanted to save and every week/payday (you fill in the frequency), you could buy Disney dollars. That way you're saving, but not keeping that tempting cash in the house.

Or you could open a savings account at your local bank/credit union and earn a little bit of interest. This option might be a good way to teach your children about bank accounts. You just work out how much you want to save and how long you have to save...divide that by the pmt frequency and you have your deposit goals. Kids can save their spare change in a big jar and you can have a "change rolling" party where everybody sits around rolling the loose coin.

Hope this helps! Have a great trip!!!
Ginny

 

[Michelemouse]

Our bank offers a vacation club but we've never used it. You basically put X amount of $$$ away each week. Then, at the end of 50 weeks they add an amount equal to one of your payments. We have found that, for us, it's really no different than putting the money in our savings account so we haven't done it. Other banks may offer more incentive for having one of these accounts though, so check with yours.

 

[WDWLVR]

I use Microsoft Money and i just set up a dummy fund called Vacation Fund. I "transfer" the money from checking into this fund. It never really leaves the checking account, but the checking balance changes. That way when we are on vacation I know that anything i take out of the atm will be coming out of this fund. Some pay periods i put nothing in it - others get a lot more. I just put our whole tax refund in it.

The nice thing too is that if we need emergency money for anything it is there.

 

[Nancy]

My credit union has Christmas and Vacation clubs and I utilize the Christmas one. It is directly taken out of my paycheck, so I don't even miss the money. I actually use it more for a vacation club or an extra savings because there is no ATM card attached to it. I can withdraw money at anytime by transferring it to my regular savings account. I also am buying Disney dollars every week (either 20.00 or 25.00)

 

[CamColt]

Since my bank doesnt pasy interest on Christmas Clubs and the like, I just deposit it into my savings account and keep track of how much is for what(Christmas, Vacation, Savings, etc...) Working in banking for 10 years has made me a bit nuerotic.
BTW Hillbeans, check your Private Messages.

 

[Annie&Hallie'sMom]

I see your in NJ like me. Here's what I did. I started at bank account at Valley National with $100. They have Coin Star machines (ok, not Coin Star brand, but you get the idea). You just pour your change in there and you get a slip of paper which tallies up how much you have. Go to the teller and deposit. Now you've gotten rid of that change and you're earning interest (ok, a pathetic amount of interest, but interest non the less!). I had a pretzel barrel of change for 12 years (I hadn't put much in it over the past few years). Turned out to be $68! Now I am a woman possessed, picking up pennies and searching for change. You can bet I'll be going back and putting in my pennies.

 

[Hillbeans]

Thanks to everyone for the great advice. I just today upped my Credit Union at my work as my temporary vacation fund. I'll call them later and ask if they have a real "Vacation" club. I also roll all my change and give it to my DS3, but I may just now give him the quarters, and i'll use the dimes, nickles and pennies for our Florida fund.

Camcolt, I just PM'd you.

-Hillary

 

[GoofItUp]

Another option to consider is Savings Bonds. Similar to buying Disney Dollars, but it does earn some interest. They are not easy to spend (or transfer to your checking account!) so you're less likely to dip into the funds. We buy these through a payroll deduction at DH's work. Right now the majority of them are earning better interest than our savings account!

 

[AnnaS]

The credit union where I work offers all kinds of services. They do have a vacation and Christmas account. I only use it for Christmas. They take it right out of my paycheck and in October I receive the check. In addition to this, I also do my own envelopes at home, 1 for Christmas (again) and 1 for Vacation. I try to estimate how much I will need and multiply that by 52 wks. Sometimes more, sometimes less. I am very disciplined and never touch it.