saving-budgeting

Should You Open a Vacation Savings Account? Here's Why it Might Be a Good Idea

Taking time off should feel exciting, not stressful. But, if you’re like many people, vacation costs can sneak up on you. From flights and hotels to meals and souvenirs, those costs add up fast.

One mom in Carmel, Indiana, cited that a hotel stay alone can cost up to $400 per night.[1] Meanwhile, if you want to travel a bit farther, you might spend even more. In 2025, travelers plan to take about four trips each, with the average vacation budget reaching $5,051.[2]

That’s why a vacation savings account can help. It’s a simple way to set aside money just for travel. With the right plan, you can enjoy your time off without going into debt or dipping into your emergency fund.

Let’s look at how these accounts work, why they matter, and how you can get started today.

What is a Vacation Savings Account?

A vacation savings account is a type of bank account made to help you save money for a trip. It works like a regular savings account, but it’s used only for your vacation fund.

The idea is to keep this money separate from your everyday spending. That way, you’re less tempted to touch it. Many people use these accounts to save for summer trips, family holidays, or even dream vacations.

How Do Vacation Savings Accounts Work?

You choose the amount you want to save and how often you want to put money in. You might add money weekly, biweekly, or monthly. With each deposit, the money grows, and when it’s time to travel, your funds are ready.

You can open a vacation savings account at most banks or credit unions. Some may offer special perks, like no fees or better interest rates, which can help your savings grow faster.

Benefits of a Vacation Savings Account

There are a few key reasons to open a separate savings account for vacation:

Better budgeting.
Less temptation to spend.
Peace of mind.
Focused goal setting.

When you start a vacation savings account, it’s easier to see how much you’ve saved and how much you still need. And when your vacation money is in a separate place, you’re less likely to use it for other things.

Plus, you will be less likely to worry about putting your trip on a credit card or dipping into emergency savings. Then, you can plan your trip based on how much you’ve saved, not how much you hope to afford.

Options To Start a Vacation Savings Account

You have a few ways to start saving for your trip. A basic savings account is one of the easiest. But depending on how long you have to save, you might want to explore other options.

Savings accounts are great for short-term or long-term savings. You can start small and keep your money separate from other funds.
Money Market Accounts (MMAs) often offer better rates than traditional savings accounts. However, they may require a higher balance.
With a Certificate of Deposit (CD), you lock in your money for a set time. So, a CD can be best for trips planned a year or more in advance.

If you’re not sure which type of account would work best, explore our financial calculators.

How To Fund and Build a Vacation Savings Account

Once you open your vacation savings account, it’s time to fill it. These tips can help you build your vacation fund faster.

1. Set a Goal

Estimate how much your trip will cost. Divide that total by how many months you have to save. This gives you a clear target and helps you track progress over time. A savings goal calculator can help.

You might also like: How To Set Savings Goals and Track Your Progress

2. Automate Your Savings

Set up automatic transfers from your checking to your vacation account. It’s one of the easiest ways to stay consistent without having to think about it.

You might also like: 6 Benefits of Linking Your Checking and Savings Accounts |

3. Round Up Your Purchases

Use a bank or app that rounds up your purchases and saves the spare change. These tiny amounts can grow quickly typically without affecting your regular budget.

You might also like: What Is Round Up Savings?

4. Save Found Money

Put tax refunds, bonuses, or birthday money straight into your vacation fund. This extra cash can give your savings a nice boost without changing your routine.

You might also like: 9 Easy Ways To Save More Money

5. Cut Small Costs

Skip little extras like one coffee or takeout meal a week. Small trade-offs now can mean more freedom when you’re ready to travel.

You might also like: Saving Money at Home: 15 Money Saving Tips to Cut Costs

Tips To Use When You’re Ready to Use Your Vacation Money

When it’s time to take your trip and access your vacation fund, using your savings should be easy. That’s why it helps to plan ahead.

When it’s time to use your vacation money:

Transfer your money to your checking account before your trip.
Use a debit card tied to the account if allowed.
Track your spending during your trip to make sure you stay within budget.

Remember, the goal is to avoid debt and enjoy your vacation without stress. If you stick to your plan, you won’t have to worry about big bills when you get home.

You might also like: How Much Money Should You Keep in Your Checking Account?

Build Your Dream Vacation Fund With Centier Bank

A vacation savings account is a smart way to plan ahead. It can give you the freedom to enjoy your time off without financial stress. Whether you’re saving for a quick weekend getaway or a big international trip, setting aside money ahead of time can keep you focused and in control.

It doesn’t take much to get started. And, the sooner you start, the longer you have to add funds to enjoy later.

Ready to open your own vacation fund? Schedule an appointment with a local expert today.

Source:

[1] https://indianapolismoms.com/in-around-ind/bestie-staycation-in-carmel/

[2] https://www.travelagewest.com/Industry-Insight/Business-Features/vacation-spending-2025