I'm Saving for a Vacation -- and This 4.20% APY Account Is Speeding It Up
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My company has an "unlimited PTO" policy. And little does my boss know that I'm planning to push it to the limits next year with a five- to six-week trip across Australia and French Polynesia.
It's not gonna be cheap. Between flights, vacation rentals, and activities for my family of four, I'm estimating the price tag at around $20,000. That's a big number, but it feels a lot more manageable when I break it into chunks.
The account I'm using to save for this vacay is the LendingClub LevelUp Savings account. Here's my plan.
High APY and automatic deposits
I already have about $10,000 set aside, so that's another $10,000 left to save.
My plan is to earn as much interest as possible on my existing cash pile, plus have a place to automatically transfer more money each month from my paychecks.
LendingClub LevelUp Savings pays 4.20% APY with $250+ in monthly deposits. That monthly deposit requirement is no problem for me because I have to save more than that to hit my goal anyway.
So my balance is growing in two ways. First is steady transfers from my paychecks each month. Then on the $10,000 that's already sitting there (and new amounts as they get added), I'll earn a few hundred dollars in interest over the next year alone.
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LendingClub LevelUp Savings
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- Competitive APY
- No fees
- Easy ATM access
- Unlimited number of external transfers (up to daily transaction limits)
- Requires you to make monthly deposits to earn the best APY
- ACH outbound transfers limited to $10,000 per day for some accounts
- No branch access; online only
The LendingClub LevelUp Savings account has a lot to offer. At the top of the list is its high APY, though you must deposit monthly to earn the best rate. Next is zero account fees, a strong and straightforward perk. Finally, you get a free ATM card, which you can use to withdraw from thousands of ATMs nationwide. Interested? You can open an account with $0.
How I set it up
Here's my rough plan to reach this $20,000 savings goal:
- Starting balance: $10,000
- Automatic transfers: $500 from each paycheck (about $1,000 per month)
- Timeline: 10 months until I hit the goal
- Interest at 4.20% APY: I'm guessing this will add $500-600 extra on top
Even if interest rates drop over the next year, I'll still be earning way more than I would in a plain old checking or savings account.
And the best part is it's a set-and-forget savings plan. I don't have to think about it now that it's set up.
I'll be able to pay for our vacation fully with cash (well, booked on travel credit cards, but then paid off fully with cash) and not have to stress about money while staring at turquoise lagoons.
Other things I like about this account
The high APY is the main reason I chose LendingClub, but there are a few extras that make it even easier to stick with:
- Debit card access: If I ever need to tap into this account, I can -- no long waiting periods for transfers required.
- Free ATM withdrawals: LendingClub reimburses ATM fees nationwide, so there's no penalty no matter where I withdraw cash.
- No account fees: I don't pay monthly fees for an account, and there's no balance minimums to worry about when I withdraw later.
It's also FDIC insured like any legit bank. These features aren't things I use every day, but knowing they're available makes me feel better about parking a big chunk of my vacation savings here.
Why this plan works for me
I'm not a big fan of debt -- spending money before I've actually saved it. That's why making a savings goal far in advance and breaking it down into manageable steps is my system.
Choosing the right savings account keeps me accountable and makes sure I actually hit the end goal. For me, that means a high APY, repeatable transfers I don't have to think about, and a no-fee experience.
By the time we're wheels up, I'll know the trip is fully funded -- true peace of mind to enjoy every moment.
Want to put your savings on autopilot? Check out the best high-yield savings accounts available today and start saving more.
Our Research Expert
Joel O’Leary is a full-time Personal Finance Writer at Motley Fool Money, covering credit cards, bank accounts, investing, mortgages, and other personal finance topics. Joel has been writing about personal finance since 2018, previously leading editorial content for the How To Money podcast and serving as a resident writer at Budgets Are Sexy. He bought his first rental property at age 18, funding the down payment with savings from his high school job at McDonald’s -- a testament to his lifelong passion for smart money decisions. His work aims to make personal finance accessible and actionable for everyday readers. When he’s not writing, Joel enjoys surfing and spending time with his family.