Fund Your Travel Dreams with Higher Interest Rates
Do you have money sitting in low-interest bearing checking or savings accounts? If you have a passion for travel, you might be missing out on a simple way to earn more from your savings and fund even more adventures. The secret to fund more travel? Shopping around for higher interest rates on your savings accounts.
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The Problem with Low Interest Rates
In recent years, many banks have offered disappointingly low interest rates on savings accounts. For years, there have been limited options when it comes to checking, savings, and money-market accounts as regards interest rates. This means that your hard-earned money may not be working as hard as it could be. Even if you’ve been diligently setting aside funds for your next big trip, low interest rates can limit the growth potential of your savings.
The Power of Higher Interest Rates
However, as interest rates have started to rise, there’s a golden opportunity for savvy savers. By moving your money to accounts with higher interest rates, you can significantly increase the earnings generated from your savings.
Let’s look at an example. Say you have $15,000 in a savings account that earns 0.5% interest annually. Over the course of a year, that account would generate about $75 in interest. But what if you found an account that offered a 5% annual interest rate? That same $10,000 would earn around $750 in a year—a tenfold increase!
Fund travel with higher interest rates
Higher Interest Rates Can Fund More Travel
Now, imagine what you could do with that extra money. Earning more money such as $750 annually in our example above, could fund a weekend getaway, cover your airfare for an international adventure, or allow you to upgrade your travel accommodations. By simply choosing a savings account with a higher interest rate, you can give your travel budget a significant boost without any extra effort on your part.
Let’s look at some more opportunities for travel enthusiasts who fund travel with higher interest rates:
With a budget of $750, there are several creative and enjoyable vacation ideas you can explore to make the most of your time off. Here’s a list of just a few vacation ideas that cater to different interests and preferences in this budget level:
Road Trip Adventure
You can plan a road trip to nearby attractions that are new to you. Budget for gas, affordable accommodations like camping or motels, and pack some meals to save money. You can explore multiple destinations, enjoy scenic routes, and have the flexibility to stop at interesting spots along the way.
Beach Getaway
Find a less commercialized beach destination where accommodation and living costs are lower. Enjoy the sun, sand, and sea, and participate in low-cost activities like snorkeling in designated areas.
Outdoor Camping
Go camping in a national park or a scenic campground. Invest in or borrow camping gear, and enjoy hiking, swimming, fishing, and campfire stories. Many parks offer affordable camping fees, and you can save on meals by cooking your own food.
Some of our favorite camping adventures include Sequoia National Park, Yellowstone National Park, and in winter we’re big fans of Death Valley National Park.
Staycation with a Twist
Be a tourist in your own city or a nearby town. Book a few nights in a unique accommodation like a treehouse, tiny home, or boutique hotel using deals or discounts. Explore attractions, new restaurants, and activities you haven’t experienced before.
In Southern California, we love visiting the charming town of Solvang. It’s a charming town with an inviting Danish heritage. You may have similar weekend getaway opportunities within a few hours of your hometown.
Learning Retreat
Invest in a short course or workshop in something you’re passionate about, such as cooking, photography, surfing, or yoga, in a beautiful destination. This allows you to develop a skill while enjoying a getaway.
When planning your vacation on a budget, always look for deals and discounts on accommodations, attractions, and travel. Being flexible with your travel dates and destinations can also help you stretch your budget further.
How to Find Higher Interest Rates
So, how do you find these higher interest rates? Start by researching online banks and credit unions, which often offer more competitive rates than traditional brick-and-mortar banks. Compare the annual percentage yields (APYs) of various savings accounts and don’t be afraid to make a switch if you find a better deal.
One of our favorite financial sites for comparing savings rates is bankrate.com.
Remember, even a seemingly small difference in interest rates can have a big impact over time, especially if you have a larger sum in your savings account.
Make Your Money Work for You
As a savvy saver and travel enthusiast, you know the value of making your money work for you. By seeking out higher interest rates, you can supercharge your savings and turn your financial diligence into unforgettable travel experiences.
Listen to our podcast episode
In episode 113, we talk about the current financial climate and explain how we found an opportunity to fund more travel.
After years of historically low-interest rates, you might find substantially higher rates on savings and money market accounts by doing a bit of shopping. We were surprised at how much interest earnings we were missing out on and made a change.
On our podcast episode “Are low interest rates stifling more travel opportunities?’, we explore ideas for travel opportunities if you can earn more money by getting a better interest rate on your savings.
Conclusion – Fund Travel With Higher Interest Rates
So don’t let your savings languish in low-interest accounts. You can fund more travel adventures by seeking out higher interest rates for your savings. Take control of your financial future and start exploring the world of higher interest rates today. Your wanderlust will thank you.
Thanks for reading this post. We hope this information helps you earn more money for travel.
Julie & Art
