One of the things I like about keeping my travel savings tucked away in a separate high-interest online savings account is that I can’t access it instantly. So if I end up in a sticky situation and my ATM card is compromised, my financial liability is limited to the minimum balance I keep in my bank account (and my preset withdrawal limits).
But the flip side is when I need money from my travel savings account, it takes a few days for it to transfer through to my bank account.
Although I’ve never had any trouble with this, it does take a little forethought and preparation to ensure the funds are there when you need them.
If you anticipate needing a regular stream of income from your travel savings account, you can set up an automatic redemption plan, just as you did while accumulating.
Most banks have money market accounts, or some kind of high-interest savings account you can use. I like using Tangerine for my high-interest travel savings, and have had no complaints.