While most people agree that money can't buy happiness, experts believe that spending money on experiences instead of objects often leads to greater satisfaction. And when it comes to great experiences, is there anything better than a dream vacation? But before you take that trip, you need a savings plan that will make sure you have the experience of a lifetime. That's why many travelers have a savings plan that includes a vacation fund for their travel dreams.
If you're looking to embark on a savings plan to finance a vacation, you might want to think about the benefits of certificates of deposit (CDs). One of the major benefits is that they generally offer higher interest rates than regular savings or money market accounts. That means while your money is waiting to be spent on a plane ticket to Asia or a European cruise, it’s collecting interest at a competitive, consistent rate. And since your rate is generally fixed until maturity, you don't have to worry about surprises in the market affecting your return. You usually will have to pay an early withdrawal penalty on a CD if you access your funds before the maturity date. Ally Bank offers a variety of CDs with terms and rates to help you reach your savings goals.
A money market account is another option when it comes to building savings for a trip. While money market accounts sometimes have lower interest rates than CDs, they often offer greater flexibility. With the Ally Bank Money Market Account, you get a variable rate that's consistently among the most competitive in the country according to Bankrate.com, with no monthly maintenance fees. You get free standard checks and a debit card for convenient access to your money. You can use any Allpoint no-fee ATM—plus receive up to $10 reimbursement for fees charged at other ATMs nationwide each statement cycle.
If you can't decide between a money market account and a CD, you may want to look into a CD with some flexibility. For example, the Ally Bank No Penalty CD allows you to withdraw all your money, including interest earned, without penalty, any time after the first six days following the date you fund your CD.
Creating and maintaining a vacation savings plan is easy with Ally Bank. We offer a variety of savings options with some of the most competitive interest rates in the country and your deposits are insured by the FDIC to the maximum amount allowed by law. You can open and fund any account with any amount and we don’t charge monthly maintenance fees.
Ally Bank is committed to making saving as easy, secure and rewarding as it can be. Learn more at Allybank.com or call live, 24/7 customer support at 877-247-ALLY (2559) today.