Saving for travel: The best travel savings accounts & tips

Everyone needs a break from time to time. But since even short vacations can get expensive, it’s essential to have a vacation fund savings plan in place. Here are some of the best vacation savings accounts to help you take your next trip sooner.

Saving for travel? Here are 16 tips on how to save money for travel

Saving for travel can feel like an elusive goal with so many other expenses on your radar. But it doesn’t have to be. Whether you want to backpack across the globe, escape to a weekend retreat or stay at a luxury five-star resort, saving for vacation is within your reach.

Here are 16 tips on how to save money for travel that can help you take flight (or drive that car) faster than you think.

1. Budget

If you’re not already operating on a budget, consider making one. If you have a budget, now is the time to review it. Outline all of your expenses and how much income you have coming in.

Don’t be afraid to get detailed. If you eat out several times a week, consider adding a restaurant line to your budget. The point of a budget is to help give a clear and accurate picture of where your money goes, so more information can really help paint the big picture.

2. Cut down on expenses

Look at any non-essential expenses to see where you can cut down and save money for travel.

Do you really need that streaming subscription? Can you try making gourmet meals at home instead of going to a restaurant? Can you brew your morning cup of coffee at home instead of buying it every day?

You might even be able to save on some necessary expenses. Meal planning and sticking to a list can help you save money on grocery shopping. See if you can qualify for cheaper car insurance with a different insurance company. Free car insurance broker platforms, like Surex, can help you easily compare multiple offers at once.

Even if these savings seem small, they can add up to hundreds of dollars in travel savings by the end of the year.

3. Make a savings target

Create a travel budget based on where you want to travel — including transportation, accommodation, food, shopping and any activities — to calculate exactly how much you need to save for your trip.

Try to make an accurate travel budget by looking up how much hotels cost where you want to stay, how much transportation there costs and even how much the average restaurant in the area charges per meal.

Then set a timeline for when you want to book your trip so you know exactly how long you have to meet your goal.

4. Open a high interest savings account

Let compound interest help build up your savings for travel even faster. While standard savings account interest rates in Canada can range at around 1.5% at most, some of the best high interest savings accounts offer savings rates of anywhere from 2.5% to 5.0% or more.

That’s why it’s worth comparing the best savings account for travel fund options to make sure you’re getting the most out of your money.

Compare high interest savings accounts in Canada

5. Automatically transfer to savings

Setting up automatic transfers to your travel savings account every time you get paid can be a great way to consistently build up your travel savings without being tempted to use that money elsewhere. You can then sit back and watch your savings grow every month.

6. Use a physical travel fund jar

Having a travel fund jar at home can be an easy way to put loose change and any extra cash in your wallet towards your savings goal. It can also encourage you along your saving journey — as you watch your travel savings jar fill up, you can be reminded that all the other financial sacrifices you’re making are worth it.

Just remember to deposit the money in your savings jar into your high-interest savings account to earn interest on it as well.

7. Save on travel costs

There are plenty of ways to lower the cost of travel. Consider using airfare comparison websites to make sure you’re getting a good deal on your flight. You should also consider booking your flight as far in advance as possible to lock in a lower price.

Another way to save on travel is to book outside of peak tourist season. Hotel and airfare prices can all be lower by hundreds of dollars during off-peak seasons, depending on the destination.

8. Try alternative places to stay

Hotels can be pricey. You can potentially save on travel expenses by opting to stay in hostels or by house-sitting. Airbnbs are another great option where you can potentially save by booking an entire home with a group of people and splitting the cost.

9. Only use a carry-on

Cut down on the amount of savings for travel you’ll need to build up by avoiding expensive checked-baggage fees and only using carry-on luggage when travelling. That way, you’ll also never encounter the airport-lost-my-bag headache so common these days.

Some tips to pack light include:

• Only pack the essentials
• Pack clothing pieces you can mix and match to make several outfits from only a few pieces
• Use packing cubes to keep your few items tightly packed and organized

10. Use travel rewards

Whether it’s paying for your flight entirely with rewards points or getting a discounted hotel fare, there are plenty of credit card travel rewards programs in Canada that help you save on travel. You can compare some of the best credit cards for travel in our full guide here.

11. Look for savings ahead of time

If you know exactly what tourist spots you want to hit up on your trip, you can add that cost to your vacation fund. Plus, if you do a bit of research ahead of time, you can identify many free or low-cost activities in the area, like famous monuments, parks, street performances, hikes and local festivals.

12. Sell unwanted items

It really is true that one man’s junk is another man’s treasure. Look around your home for any items or furniture you don’t use anymore and think about selling them on online marketplaces like Kijiji or Facebook Marketplace. If you put that money towards your savings for travel, you can build up your travel fund faster.

13. Get a side hustle

Taking on some side hustles can be a great way to earn some extra money towards your travel savings goals. Consider taking on a part-time job, helping a friend with their business, taking on some freelance work or maybe becoming an Uber driver in the evenings.

14. Minimize foreign transaction fees

Using a credit card overseas typically comes with a foreign transaction fee of around 2.5%, which can really add up over time and increase your overall trip cost. Some credit cards in Canada come with no foreign transaction fee or offer other travel benefits and rewards that can compensate for the fee’s cost. Compare the best credit cards for travel in Canada in our full guide here.

15. Track expenses

Even after making your budget, it’s a good idea to regularly review your expenses to make sure your budget is still working for you and that you’re sticking to your travel savings goal. You may also find that there are some new ways to cut expenses and add more to your vacation fund.

16. Stay open

It’s natural to get your heart set on travel plans, especially after you’ve planned and saved for so long. But it’s always a good idea to keep an open mind so you can take advantage of last-minute travel deals.

Let’s say you notice a discount for different travel dates than you had originally intended, consider switching your trip. Your trip can still be amazing even if some things are a little different from what you originally thought.

How much money should you save before you travel?

While how much money you should save for travel depends on your income, expenses and where you want to vacation, most experts suggest you use the 50/30/20 rule to put less than 30% of your income towards travel.

In order to use the 50/30/20 rule, first determine what your earnings are, then divide up the funds into these categories:

• 50% for needs. These are costs that are non-negotiable and are required for you to survive, such as rent or mortgage payments, groceries and utilities.
• 30% for wants. Yes, vacations and travel come from the “wants” category, not savings. Virtually, everything that’s considered non-necessary falls into this category, including clothes, dining out and entertainment.
• 20% for savings. This category is dedicated to saving, building an emergency fund and paying off debts.

Keep in mind that the 50/30/20 rule is meant to be a benchmark. No one will be able to divvy up their finances this way perfectly, but it’s a good starting point for your savings for travel. Below is an example of how to calculate where your money is going using the 50/30/20 rule.

Best savings accounts for travel

A high interest savings account is one of the best ways to build up your savings for travel. We’ve summarized the details of some of the best high-interest savings accounts in Canada to help you save for a vacation:

9.5 Excellent EQ Bank Personal Account

9.5 Excellent

3.00%

1.50%

$0

Earn a bonus interest rate of 3% on your money with qualifying direct deposits of $2,000/month, and 1.5% otherwise. T&Cs apply.

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Why we like it The EQ Bank Personal Account is one of the best chequing accounts in Canada because it combines chequing and savings features. It offers a competitive interest rate (which does go down to 1.5% if you don't set up recurring direct deposits), no monthly fees, and even 0.5% cash back. You'll also get a prepaid EQ Bank Card you can use anywhere Mastercard is accepted and withdraw from any Canadian ATM for free. Pros & cons Pros $0 minimum balance and $0 account fee Third-party ATM fees are reimbursed Unlimited transactions 0.5% cash back Cons No physical branches for in-person service Some standard banking features, like overdraft protection and paper statements, are not available

Tangerine Savings Account

8.2 Great Tangerine Savings Account

8.2 Great

4.50% for 5 months

0.30%

$0

Earn 4.50% interest for 5 months (on up to $1,000,000 in deposits) when you sign up by November 30, 2026. T&Cs apply.

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Why we like it The Tangerine Savings Account comes with no fees, a high promotional interest rate and no minimum balance requirements. You can even set savings goals or automatic contributions every month to stay on track and watch your travel fund grow effortlessly. Pros & cons Pros $0 minimum balance to open the account $0 account fee $0 transactions High promotional interest rate Cons No physical branches for in-person service Low interest rate after the first 5 months

EQ Bank Notice Savings Account

9.2 Excellent EQ Bank Notice Savings Account

9.2 Excellent

N/A

Up to 3.00%

$0

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Why we like it Since EQ Bank is one of the best banks in Canada, we had to mention it twice. The EQ Bank Notice Savings Account offers one of the best interest rates in Canada, as well as a $0 account fee and $0 transaction fee. The only caveat is that you have to give 10 or 30 days' notice to take advantage of the higher interest rates, but this shouldn't be a problem when you're trying to save your money to travel. Pros & cons Pros $0 minimum balance to open the account $0 account fee $0 transactions Earn 2.5%-3% interest on your balance Cons No physical branches for in-person service Some standard banking features, like overdraft protection and paper statements, aren't available No Interac eTransfers

Neo Savings Account

9 Excellent Neo Savings Account

9 Excellent

N/A

Up to 3.00%

$0 - $14.99

$80 Reward Finder Rewards: Join Finder then open a new Neo Financial Chequing or Savings Account online through Finder as a first-time customer, deposit a total of at least $50 within 30 days of opening and keep the account active until February 15, 2027 to receive an $80 digital Visa gift card. Ends 30 Dec 2026. T&Cs apply. Get one of the highest ongoing interest rates in Canada at 3% with Neo's Grow membership. T&Cs apply.

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Why we like it The Neo Savings Account offers a high ongoing interest rate—especially if you have a Grow membership. Earn 2.25% interest on your balance with a Neo Essentials membership, 2.75% interest with a Neo Build membership, and 3.00% with a Neo Grow membership.. Plus, it comes with no minimum balance requirements to start earning interest. Pros & cons Pros Earn a high ongoing interest rate between 2.25% - 3.00% No minimum balance to earn interest CDIC insured for up to $100,000 Cons Membership prices vary from $0 - $14.99 No physical branches for in-person service The highest interest rates are only available on paid membership accounts (Build and Grow memberships) Can only transfer funds out through the Neo chequing account

KOHO Everything Plan

8.3 Great KOHO Everything Plan

8.3 Great

N/A

Up to 3.50%

$14.75

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Why we like it While the KOHO Everything Plan offers one of the highest ongoing interest rates of any savings account in Canada, the account itself is designed as a savings account with spending power, charging 0% FX fees on your travel purchases, and comes with a prepaid card where you earn cashback on your purchases. That said, unlike most savings accounts in Canada, this one comes with a monthly fee of $22. Pros & cons Pros $0 transactions $0 Interac e-Transfers Earn up to 3.5% interest on your balance The monthly fee can be waived under certain conditions Get 2% cash back on groceries, transportation, eating and drinking purchases plus 0.5% cash back on all other spending CDIC insured for up to up to $100,000 Cons The account comes with a standard $22 monthly fee No physical branches No ATM network

Scotia High Interest Savings Account

8.6 Great Scotia High Interest Savings Account

8.6 Great

5.00% for 3 months

1.50%

$0

Receive a special welcome promotional interest rate of up to 5.00% for the first 3 months (90 days) when you open your first Scotia High Interest Savings Account. T&Cs apply.

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Why we like it The Scotia High Interest Savings Account is designed to offer competitive ongoing interest rates on larger savings balances—so the higher your balance, the higher the interest rate. Balances between $0 and $10,000 will earn 0% interest. Balances above that will earn a standard interest rate of 1.5%–2.2%, plus a bonus rate boost to bring the total possible interest rate to 5.00% for 3 months, based on the total balance between all eligible Scotiabank savings accounts. Interest is calculated daily and paid monthly. Pros & cons Pros $0 account fee Earn up to 5.00% interest on your deposits The account's higher rates are on par with digital bank offerings CDIC insured for up to $100,000 Cons Balances below $10,000 will earn 0% interest Unless you have a very high savings balance, you can find more competitive rates at other banks

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Bottom line

Whether your travel plans are big or small, years in the making or spontaneous, there are always strategies you can use to build your savings for travel and get ready for that dream trip. Remember, it’s not worth going into debt to travel. Plan ahead to figure out how much your trip is going to cost and how you’re going to pay for it. Then, compare savings accounts to find an option that works for your financial strategy.

Frequently asked questions about savings for travel

• Where should I save money for travel?

  The best savings account for a travel fund is a high-interest savings account. You can easily compare high interest savings account options above.

  The best high interest savings accounts in Canada

• Should you have a travel savings account?

  It's always a good idea to give your savings a boost with a travel savings account. By letting compound interest go to work for you, your savings for travel can grow even when you don't add to it.

  If you want to open a new account to keep your travel savings separate, look for banks with new bank account offers to maximize your savings.

• What is the best way to save money for travel?

  While there are several tips that can help you along the way to saving for travel, essentially, the best way to grow your vacation fund is to cut down on unnecessary expenses and put as much extra away as you can into a high-interest savings account.

• Should I get travel insurance?

  While travel insurance isn't mandatory, it can be a lifesaver if you need medical attention in a foreign country. Make sure you compare multiple travel insurance plans to find one that suits your needs.

• What does compound interest do to my savings for travel?

  Simply put, compound interest helps you save faster. Unlike simple interest, compound interest is calculated on your growing balance, allowing you to earn money on interest added to your account.

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To make sure you get accurate and helpful information, this guide has been edited by Romana King as part of our fact-checking process.

Written by

Rebecca Low

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Rebecca Low is a writer for Finder. She has contributed to a range of digital publications, including Wise, income.ca and Indeed, writing on topics like personal finance, career development, and travel. See full bio

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Chelsey Hurst

Growth Manager (Banking & Investments)

Chelsey Hurst is a Growth Manager at Finder, specializing in banking and investments. She loves empowering people to avoid financial pitfalls and make better decisions with their money. Chelsey has a Bachelor of Science from Redeemer University, a Master of Science from McMaster University, and has won multiple awards for research communication. In her spare time, Chelsey enjoys cooking and taking long walks in nature. See full bio

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