Holiday Savings Accounts
Take to the skies with more spending money by comparing holiday savings accounts with Savvy.
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Are you looking to grow your savings? Compare a wide range of savings accounts with Savvy so you find the best deal in Australia and the highest interest rate to help grow your savings.
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Compare holiday savings accounts
If you’re saving for a once-in-a-lifetime trip overseas or a weekend getaway in your own backyard, finding the right savings account can put more money in your pocket before you hit the road or take to the skies.
Comparing with Savvy to find the best savings account for your holiday funds will help you get the best rate of return on your money. Our comprehensive guide is your ticket to getting the best savings account deal and making your holiday one you’ll never forget.
What is a holiday savings account?
A holiday savings account is a fund where you deposit money for a trip away or special occasion. While financial institutions don’t offer holiday-specific accounts, there are short and long-term savings accounts that allow you to save for an upcoming holiday. Some banks will also allow you to split your savings across different goals. While the money is all in one account, you can group your money into different savings goals. For example, you may be saving for your wedding but also want to put money away for the honeymoon.
Setting up a holiday savings account can be a good way of pooling money for costs associated with the trip, such as flights, accommodation, food and shopping. When you’ve decided where you’ll be holidaying, it’s a good idea to plan out some of the finer details by drawing up an itinerary. This will allow you to budget your spending in advance and consider the costs associated with your holiday. All of this can lead to you having a better idea of what you’ll have available to spend and help ensure you choose the right account for your needs.
What types of savings accounts should I consider for my holiday funds?
Choosing the right account can give you more to spend when you touch down at your destination. When comparing with Savvy, it’s worth considering the following accounts:
Online savings account
A simple and easy-to-use fund, an online savings account gives you a place to house your money over an indefinite period. These low-cost accounts come with 24/7 access to make depositing and withdrawing funds fuss-free. Online savers usually come with one of two types of interest: bonus high interest or introductory rates. You can earn bonus interest if you meet monthly account conditions, such as minimum deposits or balances. For instance, some banks require you to contribute $200 monthly and make no withdrawals to qualify for additional interest. On the other hand, introductory rates are offered by banks to entice customers to open accounts. Account holders get up to six months of high interest before reverting to a much lower base rate. Bonus and introductory rates can be up to ten times higher than their base rates.
Term deposit
If the holiday you’re saving for is far off in the distance, a term deposit is a safe and effective method of long-term saving. Term deposits differ from savings accounts in that your funds are locked away for a set term and you can’t make extra deposits. Your money earns compound interest until the date of maturity unless you provide your bank with 31 days’ written notice. Term deposits have few ongoing or upfront fees and have a fixed interest rate, so you’re rate of return is all but guaranteed. You can use Savvy’s compound interest calculator to estimate how much you can earn over time.
Christmas savings account
A holiday doesn’t have to involve planes, trains or automobiles. It could simply mean some much-needed time off over the Christmas/New Year period. As such, some Australian banks, credit unions and building societies offer Christmas club savings accounts. These short-term accounts act like a term deposit, allowing you to deposit money for nine months of the year and then tap into it from December to January. Most institutions charge you a fee if you dip into your funds before maturity. Christmas club accounts allow you to make year-round deposits, and some accounts come with bonus interest.
Types of savings account
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How to make the most of your holiday savings
Find a competitive interest rate
Opening a savings account with a competitive interest rate will spur growth and earn you a greater return on your holiday fund. Similar to shopping around for the best price on a car, doing your homework will help you lock in the best interest rate the market has to offer.
Compare with Savvy
Interest rates, accessibility and fees: these variables come together to make up the inner-workings of a savings account. By comparing them with Savvy, you’re sure to find a fund which can help you achieve your holiday savings goal.
Create a budget
Holidays come with a range of costs, including flights and accommodation. Before selling yourself on the dream getaway, draw up a budget and work out how much you can comfortably afford to put towards your upcoming trip. Savvy has an easy-to-use budget calculator to simplify this process.
Avoid peak travel periods
Flights are more expensive during peak travel times because demand is sky-high. For instance, flights to the US are more expensive during their summer months because it’s considered peak time for tourists. As such, choosing to fly during a country’s off-peak period will be cheaper and leave you with more leftover spending money.
Keep an eye on exchange rates
Watch out for the currency exchange rates your institution is offering. If the exchange rate is high, it can be a good idea to secure it by getting a travel money card. Institutions offer these prepaid cards so you can spend overseas and avoid foreign transaction fees.
Frequently asked holiday savings account questions
Our savings calculators
Use our savings calculator to help you calculate how much you could save over a set timeframe based on different deposit sizes and frequencies.
Your savings can put in work for you. Crunch the numbers to see how much interest you could earn on top of your interest by compounding daily, monthly and annually.
It's crucial to have a clear idea of your monthly household budget to see where your money is going and where it could potentially be better spent.
If you're applying for a loan or need to know what your salary is for your tax return, you can use our annualisation calculator to work out what you'll earn this financial year.
Setting savings goals is important. With this tool, you can work out how much you'll need to deposit to reach your financial aims over a set timeframe.
Just as important as knowing how much to deposit is working out how long it'll take to reach your goals. This savings goal calculator can help you do just that.
