Are they worth it for families?

If you’re like most people, traveling with your family is probably something you look forward to for months in advance. Yet despite the joy that travel can bring, figuring out how to pay for a family vacation without going into debt can be stressful.

Estimates show that the average cost of a trip in 2025 is over $7,000. So, if you’re planning a family vacation in the near future, it’s important to have a solid savings strategy.

Some financial institutions offer vacation savings accounts marketed specifically for people who want to tuck away money for future travel plans. Read on to learn more about these types of accounts so you can figure out if they’re a good fit for you.

A vacation savings account is a dedicated deposit account that some banks and credit unions offer for the specific purpose of saving money for travel expenses. It’s common to find vacation savings accounts (sometimes called club accounts) at community banks or local credit unions. No matter where you open the account, the basic concept is essentially the same.

With this type of account, the goal is to set aside small amounts of money on a regular basis. At the end of your savings journey, you can use that money for travel-related purchases such as flights, rental cars, lodging, meals, and other vacation costs.

Each vacation savings account is different, so it’s important to review the terms and conditions before you open one. That said, many of these types of accounts include features such as:

Vacation savings accounts aren’t ideal for everyone. But they could be a good fit for families that tend to overspend when all of their income sits in a single, general account. These accounts also might work well if your bank or credit union offers special incentives that could help boost your vacation savings.

If you’re considering a vacation savings account, it’s always a good idea to review the benefits and drawbacks of these types of deposit accounts first. Here are some details you should know.

• Savings separation: Keeping your travel savings in an individual account could help you avoid mixing that money with other savings goals, such as building an emergency fund.

• Automated savings: With many vacation savings accounts, you’re able to set up recurring deposits, which can make it easier to stay on track with your travel savings goals.

• Convenience: If you already have other deposit accounts at a local bank or credit union, opening a separate vacation savings account at the same financial institution might be convenient.

• Lower interest rates: Many vacation savings accounts offer lower interest rates compared to what you might find among the best high-yield savings account (HYSA) offers.

• Limited access: Some vacation savings accounts may restrict how often you can withdraw cash from your account or make you wait until a specific month to access your money. Extra withdrawals or withdrawals at the wrong times could result in fees.

• Not widely available: Most online banks and major financial institutions don’t offer vacation club accounts. Instead, they’re more common at local banks and credit unions.

Before you open a vacation savings account for your next family trip, it’s also wise to review how this financial product compares to other savings options, such as a high-yield savings account.

As you can see, the primary benefit of a high-yield savings account is the potential to earn more interest on your money. And depending on where you decide to deposit your cash, an HYSA may offer you more flexible access to your cash when you want to make withdrawals (though some institutions limit withdrawals to six per month). You can also use a budgeting app in combination with an HYSA to help keep track of your savings progress along with other financial obligations.

A vacation account, on the other hand, is designed for a specific purpose and isn’t quite as flexible. That said, if you’re someone who appreciates structure, a vacation account could provide the framework and tools you need to successfully save for upcoming travel.

No matter where you decide to save your travel money, it’s wise to have a strategy when it comes to vacation costs. Below are some tips to make saving for your vacation easier.

• Set up automatic transfers. Each time you get paid, schedule recurring transfers to go into your travel savings fund so putting away cash for your vacation becomes a habit.

• Earn a bank bonus. If you need to open a new savings account to put away cash for your upcoming vacation, consider opening an account with a bank that offers a bonus to eligible new customers. Just make sure to read the fine print and confirm you qualify for the offer.

• Plan backward. Calculate the estimated cost of your vacation as far in advance as possible. From there, you can divide your total expenses by the number of months until you travel. Completing this exercise will let you know how much money you need to save each month for a debt-free vacation.

• Use credit card rewards. Points, miles, cash back, and other credit card travel benefits could help you cut your vacation spending — perhaps significantly. If you’re planning a vacation in the near future, consider whether the right travel credit card could help supplement your savings.

• Separate your vacation fund. Whether or not a standalone vacation fund is the right fit for you, keeping your travel savings separate from other money is typically a good idea. When you combine your travel savings with your emergency fund, retirement savings, or any other type of savings fund, it can become harder to track your progress (or avoid mix-ups).

A vacation savings account can be a helpful financial tool, especially for families who want a simple, low-effort way to stay on track for short-term travel goals. But vacation club accounts from local banks and credit unions aren’t the only way to set aside money for your upcoming trips — nor are they necessarily the best option. In many cases, a high-yield savings account with a competitive interest rate and goal-tracking features might offer better results.

Of course, when it comes to saving for vacation, the most important detail to consider is whether you’re setting aside enough money to build happy memories without taking on credit card debt. If you’re following this rule, you’re already making good financial choices, no matter which vacation savings account you use along the way.