Vacation savings accounts are a helpful way for individuals and families to save for upcoming travel.
That said, opening a suitable vacation savings account isn’t easy for anyone…
In fact, if you’re a foreigner or non-resident in the United States, you should read our other article that shares insights on how to open a US bank account as a non-resident or tourist instead.
But, we’ll also share some non-resident account opening considerations below.
Feel free to use the table of contents to jump ahead to any sections that are immediately relevant to your search.
Table of Contents
- Vacation Savings Accounts 101
- How to Increase Your Savings Rate
- Frequently Asked Questions
- Ready to Open Accounts With Banks in the USA?
Vacation Savings Accounts 101
First, it’s important to clarify what a vacation savings account is and is not.
Generally speaking, it refers to a high-interest savings account that you can open at any bank or financial institution.
That said, while interest rates are rising, accessing high-interest deposits can still be a challenge at standard retail banks.
With this in mind, depositors may want to consider alternative options that typically offer higher interest, like credit unions or community banks.
Alternatively, depending on your required financial needs, such as a loan with an ITIN number, the banks available to you will differ.
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How to Increase Your Savings Rate
While opening a vacation savings account with higher interest than a normal account can help you grow your savings faster, you may want to consider one of the following alternatives instead:
Certificate of Deposit
A certificate of deposit is issued to a bank client when they commit to holding their funds on deposit with the bank for a fixed period of time. In exchange, the bank commits to paying the client a higher rate of interest than is available in a standard savings account.
With this in mind, if you already have a portion of your vacation fund saved, you may want to consider a certificate of deposit during the period ahead of your trip. And, while most international banks typically require a much higher deposit, US domestic banks often have a wide range of options to choose from.
International Savings Account
Much higher interest rates are usually available outside of the United States, Europe, Canada, the United Kingdom, and other developed markets. With this in mind, there are several jurisdictions that may be worth considering when opening a vacation savings account in USD.
However, before opening an international account, it is important to consider the potential risks related to banking in a foreign country. These risks could include political, economic, and currency risks, depending on which countries you consider.
With this in mind, most individuals choose to open accounts in a country with the same currency and with the safest bank possible in that country. For example, if you are saving in USD, you may want to consider opening a savings account in Panama which is a USD-based economy. There, you can open accounts with interest rates that are double those offered by US banks. And, if you know which banks to approach, you’ll be able to consider opening with financially stable banks with strong operations.
Frequently Asked Questions
Below are two of the most common questions that we receive from people looking to open a vacation savings account in the US. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
How Do I Set Up a Vacation Fund With a US Bank?
To set up a vacation fund with a US bank, most individuals open a separate savings account at a bank where they have an existing relationship. They can either choose to designate the account for a specific purpose by changing the account name or simply keep it as a second account under their client profile.
Does My Savings Account Earn Interest?
To determine if your savings account earns interest, you can log into the account and view the current interest rate being applied to your deposit.
Ready to Open Accounts With Banks in the USA?
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And “yes!” GlobalBanks USA helps foreigners and non-resident individuals open bank accounts.
In fact, GlobalBanks USA even helps non-resident US LLCs and foreign & offshore entities.
To learn more about GlobalBanks USA, visit the product page to see how our team can help you successfully open US bank accounts!
