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If you’re someone who loves to travel, opening free savings accounts can help you budget for your vacation faster. By putting money aside on a regular basis for 18 months, you can earn up to $1,300 (enough to pay for your next tropical getaway or European adventure without having to dip into your regular income).
The accounts below are all high-yield savings accounts, meaning they offer above-average APYs (i.e. interest rates) compared to traditional savings accounts, which give you nearly nothing for keeping your money there. We’ve listed accounts that have APYs 10x higher than the national average, which is currently 0.33%, meaning your money is working harder for you to beat inflation and grow over time.
So, let’s take a look at some of the best free savings accounts available and how they can help you pay for your next vacation.
1. Capital One 360 performance savings account
The Capital One 360 performance savings account offers an impressive 3.40% APY (~10x higher than the national average), is free to open, and has no minimum deposit requirements. Saving with this account could cover two roundtrip flights to Hawaii next year.
You could earn up to $1,100 in 18 months with regular contributions of $200 per month on top of a $20,000 initial deposit. For comparison, if you used a regular savings account with a .33% APY and $20,000 in the account you would only earn $107 in a year.
If you’re looking for a flexible and convenient free savings account, Capital One is worth considering. With easy online account management and a mobile app, it’s a great way to save for your next adventure.
–> Open your free account here
2. American Express personal savings account
The American Express personal savings account is a great choice for travelers who want a hassle-free savings account with a high-interest rate. With an APY of up to 3.40%(~10x higher than the national average), this account is a great way to earn more on your savings. Putting your cash into this account could earn you enough to cover two roundtrip flights to New York and a two-night hotel stay.
For example, if you save $200 per month for 18 months alongside a $20,000 initial deposit, you could earn up to $1,100. For comparison, if you used a regular savings account with a .33% APY and $20,000 in the account you would only earn $107 in a year.
The American Express personal free savings account has no fees and no minimum deposit requirements. You can easily transfer money in and out of your account using the online platform. If you’re looking for a simple, no-frills savings account with a great interest rate, the American Express personal savings account is a great choice.
–> Open your free account here
3. Marcus by Goldman Sachs online savings account
The Marcus by Goldman Sachs online savings account is a great option for travelers looking to earn a high rate of interest on their savings. With an APY of up to 3.75% (~11x higher than the national average), this account is perfect for those who want to maximize their earnings. You could earn up to $1,200 in 18 months, enough to easily budget for a vacation that covers a week-long stay in the City of Lights.
For example, if you save $200 per month for 18 months alongside a $20,000 initial deposit, you could earn up to $1,300. For comparison, if you used a regular savings account with a .33% APY and $20,000 in the account you would only earn $107 in a year.
The Marcus by Goldman Sachs online savings account has no fees and no minimum deposit requirements. You can easily transfer money in and out of your account using the online platform. If you’re looking for a high-yield savings account that is easy to use and offers competitive interest rates, the Marcus by Goldman Sachs Online savings account is a great choice.
4. Ally Bank online savings account
The free Ally online savings account is another great option for travelers looking to save for their next trip. You could easily save up to $1,200 in 18 months with regular contributions of $250 per month on top of a $20,000 initial deposit. This amount could cover a roundtrip flight and a three-night stay in New York, leaving you with plenty of money to explore the city’s attractions and food scene.
With a 3.50% APY (~10x higher than the national average) and no fees or minimum balance requirements, it’s a great option for those looking to earn interest on their savings. With the ability to automate savings, you can easily build up a vacation fund without even thinking about it.
If you’re looking for a reliable and user-friendly online savings account, Ally Bank is a great choice. With easy online account management and a mobile app, it’s a convenient way to save for your next trip.
5. Discover online savings account
The free Discover online savings account is another great option for travelers looking to budget for vacation. With no fees and a high APY of 3.50% (~10x higher than the national average), this online savings account from Discover is a great option for those who want to earn enough to cover a roundtrip flight and a 3-night stay in Honolulu.
For example, if you save $200 per month for 18 months alongside a $20,000 initial deposit, you could earn up to $1,000. For comparison, if you used a regular savings account with a .33% APY and $20,000 in the account you would only earn $107 in a year.
You can easily deposit and withdraw money online, and there are no minimum balance requirements. If you’re looking for a no-frills savings account with a solid rate of return, Discover is a good choice.
–> Open your free account here
6. Barclays online savings account
The Barclays online savings account is a great high-yield savings accounts choice for travelers who want a high rate of return without the hassle of minimum balance requirements or monthly maintenance fees. With an APY of 3.40% (~10x higher than the national average), you can earn enough to cover a roundtrip flight and a three-night stay in Miami.
For example, if you save $200 per month for 18 months alongside a $20,000 initial deposit, you could earn up to $1,000. For comparison, if you used a regular savings account with a .33% APY and $20,000 in the account you would only earn $107 in a year.
You can easily transfer money in and out of your account, and you can set up automatic contributions to make saving even easier. And if you need to withdraw money, you can do so without penalty.
–> Open your free account here
Final thoughts
Several great high-yield savings accounts are available, each with its unique set of benefits. Whether you’re looking for a high APY, no fees, or convenient account management, there’s an account out there that can help your money grow faster than a traditional savings account that offers almost no interest—all while helping you budget for a vacation.
If we haven’t convinced you that one of the accounts above is the right choice, you can always check out some additional options with Bankrate’s savings comparison tool. Finally, ensure you check out our list of the best travel credit cards which can help you earn rewards toward free flights and hotels.
by your friends at The Daily Navigator
