Here are some tips for using and managing your online savings accounts effectively as a traveler:
Having an extra layer of security during the login process is ideal. The harder it is for people to hack into your accounts, the better.
Online savings accounts have pared-down services (since everything is online); thus the fees should be similarly pared-down. All you should need to do with your travel savings account is move funds to and fro between your bank account – which should never carry a fee.
Your bank might offer a high-interest online savings account, which will make it even easier to transfer funds between accounts. (But again – check for fees!)
I have an online savings account for my taxes, one for savings, and one as a “slush fund” where I invest extra earnings from my higher-income months (to use as needed during lower-income months).
Compartmentalizing each savings goal helps you track your progress better. More on this concept in the next section.
If you have a lot of money in your online savings account (and you don’t have an immediate need for it all), consider moving some of it into a longer-term investment that will get you a better return. You don’t have to go crazy and risk it all (or any of it), but if you can afford to let it sit for a while, consider bonds (if you want a guarantee) or low-risk mutual funds. More on this below.