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Christmas
Club
Basics
The Christmas club year begins on October 1st
and matures on
September 30th, but you may open the club at any
time of the year.
Deposits:
- Payroll
Deduction is the
easiest way to deposit funds into the
account. Sign up once and we
will handle the rest.
- Transfers
from other HEFCU accounts (savings,
checking, or MMF);
- In-Office
Deposits: you may make periodic
additional deposits at any of our branch
offices.
Withdrawals:
Since this is a Christmas Club account,
withdrawals before maturity are
not authorized. If you have an emergency,
you may close the account early and then open it
again the following October.
Payment Options:
You have
two payment options at maturity:
How much do I deposit?
There are no minimum or maximum requirements --
it is entirely your choice.
I suggest that
you estimate your normal holiday costs and then
divide it by the 26 pay periods. For example, if
you normal spend around $1000.00 on the holidays
-- a payroll deduction of $38.00 per paycheck
will keep you
debt-free and worry-free next year (and
every year there after).
If you normally spend $2000 -- you'll need $76.00 per
paycheck -- and so on.
Just remember --
you know you're going to spend the money -- so
why not start putting it away now -- a little at a
time.
How
do I sign up?
If
you
already have a credit union account, simply call
the office and ask us to add a Christmas Club
account.
If you want to make deposits from your
current payroll deduction (without
increasing your deductions), tell us how much
and we will allocate that amount to the
Christmas Club account.
If you want to
increase your payroll deduction, you will
need to complete a new "Payroll Deduction
Authorization Card. You can stop by the
office or we can mail you a card. It only takes
a few minutes to complete and you only need to
do it once. Once you're signed up, that
amount will continue to be deposited into your
Christmas club each payday -- until you tell us
otherwise.
Accrual
of Dividends:
Dividends begin to accrue on both cash deposits
and non-cash deposits on the same business day
that the funds are credited to your account. A
non-cash deposit means check deposits. If you
withdraw funds from your account before the
dividends are paid, you will receive the accrued
dividends, on the withdrawn funds, at the end of
the quarterly dividend period. If you close
your account before the end of the quarterly
dividend period, you will not receive the
dividends which accrued on your balance.
Rate
Information:
The term "dividend rate" means the dividends
paid on an account without the effect of
compounding previously earned dividends. It is
shown as an annual figure and is expressed as a
percentage of the balance. The Annual
Percentage Yield (APY) means a percentage rate
reflecting the total amount of dividends paid on
an account, based on the dividend rate and the
frequency of compounding, for an annual period.
All non-certificate accounts are considered
"variable rate accounts". This means that the
dividend rate and APY may change quarterly at
the discretion of the board of directors.
Dividends are paid from current income and
available earnings, after required transfers to
reserves at the end of each dividend period.
There is no limitation on the amount the
dividend rate and APY may increase or decrease. |
