Holiday Savings Accounts

Take to the skies with more spending money by comparing holiday savings accounts with Savvy.

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, updated on July 28th, 2023       

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Compare savings accounts

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.  

site-logos Rabobank High Interest Savings Account
  Maximum interest rate Base interest rate Introductory offer period Government guarantee  
site-logos 5.75% p.a. 4.40% p.a. 4 months Yes
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Rabobank’s High Interest Savings Account helps grow your savings while offering flexibility and easy access to your money.

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site-logos Up Savers Account
  Maximum interest rate Base interest rate Introductory offer period Government guarantee  
site-logos 3.60% 0.00% N/A Yes
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Use invite code SAVVY10 for $10 upon successful sign-up. (Refer to offer T&Cs on Up website)

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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

Why compare savings accounts with Savvy?

How to make the most of your holiday savings

Frequently asked holiday savings account questions

Can I open multiple savings accounts for various holidays?

Yes – there’s no real limit to how many savings accounts you can have if they’re all with different institutions. If you want all your money under one roof, some banks allow you to have up to nine separate savings accounts. That being said, pooling your money in one account will maximise interest, allow you easier access and reduce fees.

Can I open a joint account?

Yes – joint savings accounts can allow you and a friend or partner to save towards a holiday using one pool of money. You can have two or more account holders on most types of savings accounts and they’ll come with ‘one to sign’ or ‘both to sign’ protections. ‘One to sign’ means any account holder can withdraw or modify the fund, whereas ‘both to sign’ requires the authorisation of all parties to make any withdrawals or changes. It’s worth discussing what happens to the money if you need to close the account unexpectedly.

Should I put together an emergency savings fund?

Yes – it’s wise to set up an emergency savings account which you can access if you’re overseas. You can tap into this account if you experience a life emergency while you’re travelling abroad, but it’s important to have one regardless of whether you’re travelling.

How do I open a savings account?

Opening a savings account is as simple as visiting a bricks-and-mortar branch or applying with an institution online. To open an account independently, you will need to be over 14 years old and an Australian resident. For youngsters under 14 who want to tuck some money away for the family holiday, they can open an account in-branch if they’re accompanied by a parent. You’ll also need to verify your identity with two forms of photo ID, which can include a driver’s licence, passport, birth certificate or Medicare card.

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