With multiple financial goals, it’s understandable that saving up for fun expenses could fall to the wayside. College savings, a retirement plan or emergency fund will often take priority when it comes to divvying up your paycheck, but not having sufficient cash saved for your summer travel plans could threaten your bank account, as well.
Luckily, many local banks and credit unions offer high-interest vacation savings accounts designed to help people save up for their much-needed getaways. The average U.S. savings account rate is 0.12% APY; these institutions significantly beat that number, making it easier — and quicker — to sock away money for summer vacation plans.
6 Vacation Savings Accounts For Summer 2014
1. Foothill Credit Union’s SummerTime Savings Account
Members will earn 1.50% APY on their vacation funds with a SummerTime Savings account from Foothill Credit Union. Account holders can deposit between $50 and $2,000 per month through payroll deduction or direct deposit, and make penalty-free withdrawals from June. 1 to Aug. 31.
If you work in education, Foothill Credit Union offers an even greater incentive to use its SummerTime Savings product; to help school employees who do not receive paychecks during the summer months, Foothill Credit Union is offering a 3.00% APY to account holders who work at one of the school Select Employer Groups.
Foothill Credit Union serves schools, hospitals and other businesses in the San Gabriel Valley.
2. Hospitality Federal Credit Union’s Vacation Club Account
Compounded annually, Hospitality Federal Credit Union‘s Vacation Club Account pays a high 1.25% APY. Dividends are paid in full May 1.
Credit union membership is available to hospitality employees and their immediate family members and households, including employees of Caesars Entertainment, Hilton Worldwide and Intercontinental Hotels Group, and members of the Metropolitan Memphis Hotel and Lodging Association.
3. New South Credit Union’s Vacation Club Account
With three locations in Tennessee, New South Credit Union gives local residents the opportunity to lock in high yields on their vacation savings. New South Credit Union’s Vacation Club account offers 1.00% APY; deposits can be made throughout the year and are accessible every March 31, when the funds are automatically transferred to another New South Credit Union account.
4. Mutual 1st Federal’s Vacation Club Account
Omaha residents save up for fun in the summer months with a Mutual 1st Federal Vacation Club account. With a yield of 0.75% APY, funds are accessible June 1 or sooner, if requested.
The credit union understands that expenses can increase a lot in the summer months — not just in the form of excursions, but also with daycare costs, and water and air conditioning bills. This vacation account is designed to cover any expense incurred during the summer months, and comes with the convenience of online banking, free e-statements and direct deposit.
Furthermore, Mutual 1st Federal’s Vacation Club can be maintained for several years. Account holders can decide whether to cash out annually or build this fund over time.
5. Tarrant County Credit Union’s Vacation Club Account
With a low minimum balance, it’s easy to invest in Tarrant County Credit Union‘s Vacation Club account. This product requires just $5 to open and an average daily balance of $100 to secure the 0.50% APY, which is paid monthly.
Saved funds are available April 30, with members receiving quarterly statements on the account to track their progress. Tarrant County Credit Union has locations in Fort Worth, Arlington, Bedford and Lake Worth, Texas.
6. Firstmark Credit Union’s Summer Savers Club
As the oldest state-chartered credit union in San Antonio, a Firstmark Credit Union Summer Savers Club Account offers members 0.50% APY. It’s as easy as setting up a payroll deduction or direct deposit to fund the product.
On June 30, 50 percent of your summer-allotted funds will be automatically transferred to another Firstmark Credit Union account, with the remaining half distributed July 31. To qualify for this account, you must have a savings account with Firstmark Credit Union.
Photo credit: Josh Engroff