Christmas club could halt debt

MILWAUKEE: When it's time for Christmas shopping each year, Alberto and Marta Zamora aren't concerned about having enough money to buy gifts. Read more
amazed

Brunswick, OH

#1 Dec 17, 2007
While it's nice to have a Christmas Club it's part of the old deal. Whenever you have a savings account that has a withdrawl limit, the bank can use that money to loan out. Back when you received 5% compounded quarterly this worked out fine. In todays banks you usually get .025...I'm not going to give them my money to loan out at 18% while they only give me a pittance, I'm going to invest the amount into something that yields a higher return for that year and have a little extra to spend. I might change my mind if the banks stop gouging us, but not until then.
JRP

Remington, VA

#2 Dec 17, 2007
18%? Not. Not at a bank anyway.
amazed wrote:
While it's nice to have a Christmas Club it's part of the old deal. Whenever you have a savings account that has a withdrawl limit, the bank can use that money to loan out. Back when you received 5% compounded quarterly this worked out fine. In todays banks you usually get .025...I'm not going to give them my money to loan out at 18% while they only give me a pittance, I'm going to invest the amount into something that yields a higher return for that year and have a little extra to spend. I might change my mind if the banks stop gouging us, but not until then.

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