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Asset Preservation Advisors


State: GA

APA’s philosophy is to work closely with our clients to develop an in-depth understanding of their unique needs and objectives. We then customize a municipal bond portfolio that best meets their specific goals and needs. APA manages high quality municipal bond portfolios in four strategies: Short-Term, Intermediate-Term, High Income, and Taxable.

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Christmas Clubs Ring a Bell with Older Investors

Christmas Clubs, a holiday savings vehicle, appear to resonate more with older investors. Learn more.

| BY Adriana Reyneri

Christmas Clubs, special bank accounts to help customers save for the holidays, appear to resonate more with older investors, according to recent research from Millionaire Corner.

The dedicated savings accounts hit their zenith in the 1970s, according to the website, so it’s no surprise that Christmas Clubs are more likely to ring a bell with investors ages 60 and older. More than 80 percent of these older investors say they are familiar with Christmas Clubs, compared to 28 percent of investors ages 40 and younger, according to our survey of more than 1,200 investors conducted in September.

Despite their familiarity with Christmas Clubs, few older investors – less than 6 percent - have a savings account dedicated to holiday spending, according to our research. Investors ages 40 and younger are even less likely. Less than 3 percent has a holiday savings account.

“A Christmas club account – which is not really a ‘club’ at all – is simply a special short-term savings account set up by a financial institution to encourage nest-egg building for the holidays,” according to Bankrate contributor Marcia Passos Duffy. 

The accounts can typically be opened with a small initial deposit and are designed to hold money until the start of the holiday season, according to Bankrate.  More than 70 percent of credit unions and some banks offer Christmas Clubs, which can help investors avoid a holiday hangover of credit card debt.

“These kinds of accounts, small as they may be, are important because they encourage savings,” Patrick Keefe, a spokesman for the Credit Union National Association,” told Bankrate. 

Layaway services appear to have even less appeal than Christmas Clubs, according to our September survey, which finds that more that 71 percent of investors plan to spend the same on gifts as last year, and 15 percent – citing personal and national economic concerns – plan to spend less.