Still bummed about having to cancel your summer vacation? You’re not alone. Nearly half of Americans have had their travel plans disrupted by COVID this summer.
Since airlines, some cruise lines and certain hotels are offering refunds for canceled trips, these would-be travelers must now decide what to do with their refunded vacation money. You could use it to pay down a credit card bill, start an emergency fund or contribute to your retirement savings. Or here’s another idea: Grow your travel refund and save up for an even better trip next year.
With minimal effort, your travel refund can grow into an even bigger vacation fund you can use to finally take that dream trip or enjoy a little more luxury on your next adventure. To get the most possible mileage from your refund, open the highest-yield interest-earning account you can find, and let the power of interest work its magic.
OCCU offers a variety of solutions to help you cultivate your travel refund, from high-yield savings accounts to interest checking. Here are four ways we can give your vacation fund a boost:
1. Ignite Savings
The fastest way to kick-start your travel fund is to stash it in our high-yield Ignite Savings account. We designed this account specifically to help savers of all types accelerate their savings. You’ll earn a high annual percentage yield (APY) on the first $500 you deposit, plus a competitive rate on the rest of your balance. Since there’s no minimum deposit required, even a modest travel refund can benefit.
2. Remarkable Checking
If you prefer to leave your travel refund easily accessible within your checking account, consider upgrading to Remarkable Checking. Unlike most checking accounts, this one pays you interest. You don’t have to maintain a minimum balance to earn interest; all you need to do is enroll in eStatements, set up one automated transaction (like direct deposit or Bill Pay), and swipe your debit card at least 12 times a month.
3. Money Market
Got a sizeable travel refund? For larger balances, a Money Market account may yield better returns. With at least a $500 deposit, you can earn on your entire savings balance. Plus, your money remains accessible with unlimited in-person withdrawals.
Want to leverage your travel refund into longer-term savings? An Individual Retirement Account (IRA) lets you take full advantage of compound interest over time. Interest rates range for a 6-month IRA certificate and a 60-month certificate. At OCCU, you can choose between a traditional or Roth IRA.
Once you’ve got your travel refund, it’s really just a matter of choosing the right account for your needs. The most important factors to consider are the size of your refund and how accessible you want your money to be. Once you make the deposit, you can sit back and let the interest do the work for you. By the time you’re ready to plan your next vacation, you’ll have even more funds available to make it a memorable one.