A Christmas club savings account is a savings program designed to help people put some money away each month for Christmas expenses and gifts. The first one was offered by the Carlisle Trust Company in Pennsylvania. 350 customers signed up and saved an average of $28. The idea really caught on during the Great Depression and continues in popularity today though they provide very little return on the investment. Perhaps State Farmers Bank put it best back in 1920 when they encouraged parents to open one for their children "to develop self-reliance and the saving habit."
In this age of internet and electronic banking, we're not sure how many banks have continued the idea, but you might want to check with your banker to see if they still have a Christmas Club program. Very often, smaller, local banks will offer them to attract new customers. If not, you can always open any savings account, and contribute weekly.
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