Whether you are planning a once-in-a-lifetime pilgrimage to an exotic destination or scheduling the family's annual summer road trip, every detail counts. This includes preparing financially and building your vacation savings—perhaps with a certificate of deposit (CD)—to make the most of your vacation. Besides, who wants to come back from a trip with loads of debt to pay off?
The First Step in Planning Your Vacation
Creating a budget will help you figure out roughly how much you want to save for your vacation. Start by accounting for the cost of transportation, lodging and food. And don't forget to estimate the costs of extras such as souvenirs and gratuities.
Choose the Best Saving Method
When it comes to where you put your vacation savings fund, you have several options, including which bank you'll trust with your money. At Ally Bank, you have several choices:
Interest Checking Account: You can save within your checking account if you keep track of how much you are saving each month, or open a separate account strictly for your vacation fund. Either way, the Ally Interest Checking Account offers a number of features that can make staying in control of your money easier.
Online Savings Account: A separate savings account allows you to divide your vacation money from your everyday funds. Or, open both an Interest Checking Account and an Online Savings Account and set up an automatic transfer each week to make saving as easy as possible.
Money Market Account: Similar to our Online Savings Account, but with the added flexibility of debit card and check access.
CDs: CDs usually come with higher interest rates than other types of accounts. You can open an Ally Bank CD for a specified term that ranges anywhere from a few months to years. Most CDs have early withdrawal penalties, which may make you more likely to stick to your savings plan.
No matter which option you choose, Ally Bank can help you save for your vacation. We compound interest daily so your money grows faster, and we have some of the most competitive rates in the country according to Bankrate.com.
The Problem With Using Credit
One final note: using a credit card to pay for a vacation can end up being a costly decision. Once you return from your trip, you will have to start paying it off, possibly at a high interest rate. Instead, create a budget and build a savings plan with your vacation in mind. Saving as much as you can beforehand helps make your vacation more of what it should be—a chance to reward yourself for working hard the rest of the year.
Learn more about the many ways to save by visiting Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.
Ally Bank, Member FDIC