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PARKERSBURG - The Christmas Club savings account may be a thing of the past in some markets, but the accounts remain popular among bank and credit union customers in the Parkersburg area.

Most local banks and credit unions offer some type of Christmas Club account, a program designed to help people save small amounts of money throughout the year for holiday shopping. Every month, money is withdrawn from a checking account and deposited into the Christmas Club account. Come October, the customer is mailed a check for the amount saved over the year.

"They are still maintaining popularity here," said Mark Bradley, president and CEO of Peoples Bank in Marietta.

"It's for savers who would like to build a little nest egg for the holidays. It's convenient, it's routine and it helps them save for a later date."

The Christmas Club account dates back to the early 1900s when the Depression caused banks to broaden their services during tough economic times. With the arrival of credit cards, the accounts dwindled in popularity.While many banks no longer advertise them, they usually still offer them.

With most Christmas Club accounts offering very low-interest rates, the financial profit may not be what draws people to this type of account. Bradley said what makes the Christmas Club attractive is its simplicity and convenience.

"It's a practical way to save, and it builds discipline," he said. "We think it's an important service for our customers. People who want to save money in this manner have done it for years and will continue to do it in this market."

One third of U.S. banks and around 70 percent of credit unions still offer some kind of Christmas account, according to the Credit Union National Association.

While the basic idea of the Christmas Club is the same everywhere, each bank will have different guidelines and benefits for members.

Peoples Bank offers a low interest rate, but some banks offer to contribute the final payment to the account before the lump sum is mailed to the customer in October.

Community Bank of Parkersburg offers a Christmas Club account where the customer is obligated to make 50 payments of either $5, $10 or $20. The amount due every week can be automatically drafted from a checking account, or customers can make the payments manually. The payments can be made weekly, biweekly or monthly. At the end of the 50 weeks, the bank will make the 51st payment as long as the customer has kept a pre-determined minimum amount in their Christmas Club account.

Tina Dukas, retail banking officer at Community Bank of Parkersburg, said the Christmas account is a wonderful budgeting tool that can save people the headache of finding extra cash for gifts.

"You don't have to rob your regular savings account or your checking account at Christmas time because you already saved the money," said Dukas. "The money is already saved up and you get the big check in October. There's no scrambling to find the cash."

This year, Community Bank of Parkersburg had 450 Christmas Club accounts.

"They seem to be very popular," said Dukas. "We seem to open more up every year."

To deter someone from taking money out of the Christmas Club account before October, most banks charge a fee for any early withdrawals.

Ann Price, a new accounts representative at First Neighborhood Bank in Parkersburg, said there is a $10 charge for cashing in early, and any early withdrawals must be approved by a bank representative.

"The fees involved with taking money out early really encourage people to leave that money in the account," said Price.

Price has been with First Neighborhood Bank for nearly 37 years.

"Since I've been here, the Christmas Club program has increased in popularity. They give people the incentive to save for holiday shopping."