What is a Vacation Club Account?
Vacation plans can really help us power through the daily grind, but all of those plans can cost a pretty penny! How will you pay for your vacation expenses?
Lucky for you, as a member of Rio Grande Credit Union, you already have access to a range of savings options and loans that can help you fund a large purchase, like a dream vacation. One of these options is the Vacation Club Savings Account.
Let’s take a closer look at this savings option and how it can help make your dream vacation more affordable.
What is a Club Account?
A club account is a savings account where the account holder makes regular contributions toward a set goal. Vacation club accounts are designed to help the account holder save up for vacation expenses. To help you stay on track toward reaching the goal, the funds in this account can generally only be withdrawn when the predetermined goal has been reached.
What Are Some Advantages of a Vacation Club Account?
Vacation club accounts make dream vacations affordable by spreading the costs throughout the year. But there’s more benefits to a vacation club account. Here are just a few:
- Motivates you to save
- Builds strong saving habits
- Prevents overspending and new debt
- “Hides” vacation money so you are less tempted to spend elsewhere
- Favorable dividend rates
Is a Vacation Club for Everybody?
While vacation club accounts offer a convenient way to save up for a dream getaway, they may not be the best choice for everyone.
First, club accounts restrict the account holder’s money. If you don’t have an emergency fund and/or other safety net, you may be better off building up your general savings before opening a vacation club account.
Second, if you’re the kind of vacationer who likes to plan and pay for pieces of your getaway throughout the year, a vacation club may not be in your best interest, either. With your money tied up in your club account, you are not able to use the funds to book your airline tickets in November, make hotel reservations in February and arrange a car rental in April.
Vacation club accounts make dream getaways affordable. Use this info and make an informed decision. Happy travels!
Want to Start Your Vacation Club Account?
Now that you've learned about the benefits of a Vacation Club Account, you're probably asking yourself how to get started. Stop by your favorite Rio Grande CU branch and we will get you setup. It's just $5.00 to start, and then you can setup automatic deposits.