8 top places to stash your cash

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	Savvy savers
	There's more to saving than stuffing your extra cash in a mattress.

Savings: The next big thing

Christmas club/vacation club accounts

Pros

Cons

Who it's for

Comparison

	Interest bearing. Christmas club/vacation club accounts usually pay interest at rates similar to a traditional savings account and sometimes slightly higher, says Steven Rick, senior economist with the Credit Union National Association.
	Liquid. If you get in a jam and need a little Christmas in July, you can probably access your money.
	Easy to open and maintain. Frequently there are $1 to $10 minimums to start and they usually don't have balance minimums.
	October payoff. Usually, the bank automatically closes the account and sends you a check for the total amount in October.
	Single goal. The main advantage of the account is psychological: You stay focused on one savings goal.

	Low earnings. Rates are typically less than for other types of savings vehicles -- sometimes less than regular savings accounts while carrying more restrictions and requirements.
	Plenty of rules. There are rules such as requiring periodic deposits, uniform deposit amounts, limited access to money and even to prohibiting deposits in uneven dollar amounts.
	Hard to find. These aren't as common as they used to be. If you want to open a vacation club or Christmas club account, you may have to call around a little. Small local banks and credit unions are your best bets.
	Withdrawal penalties.These are very much like a regular savings account, in the low interest earned, but unlike a regular savings account by not permitting withdrawals until October. Unless you need the psychological boost, there would be little reason to own one of these. Some savings accounts online and other institutions could also pay better rates and give you almost instant access if you need your money in the meantime.

Trying to figure out which options best match your savings strategy? Here are several key points to compare and contrast at a glance.

Select:

-- Posted: Oct. 1, 2006

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