Thinking of opening a travel savings account?
While most banks offer basic savings accounts, only a few are designed to help travelers like you.
I’m talking about savings accounts that give you high interest rates to grow your travel fund faster, zero foreign transaction fees, and easy access to your savings anywhere in the world.
See the best travel savings accounts for your next adventure
3 Best Travel Savings Account
1. Wise Travel Account
Once you open a Wise account, you can create a dedicated Travel Jar. This Jar is like your vacation piggy bank that actually grows your money. Unlike traditional banks, Wise invests your savings in government-backed assets, making it both safe and profitable.
Wise stands out because you earn daily interest for money in your Travel Jar (not just annually like regular banks).
The interest rates are available in these 3 currencies:
- USD- 4.99% APY
- GBP- 4.82% APY
- EUR- 3.37% APY
What Makes Wise the best option for aspiring travelers:
- Save money in your Travel Jar and earn interest
- Get currencies at cheap exchange rates
- Withdraw up to $250 monthly from foreign ATMs for free
- Pay like a local with zero foreign transaction fees
2. Varo Savings Account
Varo has one of the highest APY in the market. Savings up to $5,000 will start getting 5% APY.
Varo has a cool feature called Save Your Pay, which helps you automatically save a portion of your paycheck. This will help you stay disciplined to save in your travel account monthly.
Although, Varo has a high APY, if you don’t have $5,000 in your account you won’t be qualified to start earning the 5% APY. Also, international travelers should consider that Varo charges $5.95 for cash deposits through GreenDot, and its international transaction features are more limited compared to dedicated travel accounts like Wise.
3. SoFi Checking and Savings
SoFi is one of the most popular travel saving accounts.
Just like Wise SoFi offers reliable interest and FDIC coverage. This bank gives 4% APY if you deposit $5,000 monthly. It’s important to note that purchase roundups automatically boost your travel fund.
Keep in mind that SoFi has a 0.2% foreign exchange fee and a $4.95 cash deposit fee.
How much should I save for a vacation?
The amount of money you should save for your vacation depends on your income and set time you want to travel.
If earn averagely and you want to go on a vacation in 3 months, then you will have to save up 25-35% of your monthly salary.
But if you plan to travel in 10 months, then set aside 5-10% of your monthly income.
Pick any of the travel savings accounts that suit you. Wise is a good option and the most preferred platform for frequent travelers.
Once you’ve opened a Wise account, create a Travel Jar account and move money from your main account without any fee.
Although the interest may be growing your account daily. Nonetheless, you can still deposit a percentage from your monthly salary.
Bottom Line
You can save up funds and travel on a budget to any destination of your choice. Open a Wise account to start saving
