Unsure how to pay for that long-awaited holiday? Let’s look at why you should pay for your overseas travel plans using your own money – and the best ways to go about it.

Here are some of your options.

Saving for a holiday

Saving for an overseas trip helps you feel like you’ve really earned it. If you plan ahead, work out a budget (and stick to it), before you know it – you’re on your way.

But how much do you need to save? And how do you build up your travel fund? Let’s break it down.

The costs of travel

Everyone’s travel saving plan will look different. And how much money you need depends on where you go, what you want to do, how long you’re travelling for and who you’re travelling with.

There are a lot of variables. But to give you an idea, here are some of the main costs you’ll need to consider:

  • flights and accommodation
  • exchange rates and fees
  • transport while you’re there
  • food and drinks
  • phone and internet
  • activities and tours
  • travel insurance
  • visas if applicable
  • souvenirs and big purchases
  • splurge money.

With a better idea of the costs, you’ll be able to set a realistic budget for your trip – daily, weekly and monthly.

Building your savings

Saving for your trip can take time. But you can get there quicker by opening up a dedicated savings account. This way, you can set up a regular payment to go directly into this account.

Plus, at the end of the month you might find you have a few hundred dollars left over in your everyday transaction account. But instead of keeping it there ready to spend, you can simply transfer it over to your savings account – where it will earn better interest.

NAB Visa Debit cards

NAB Visa Debit cards give you easy and secure access to your money – wherever Visa is accepted in the world. Unlike a credit card, using a debit card means you won’t have to worry about high credit interest rates, or paying off any holiday debts.

If you use a NAB Platinum Visa Debit card, you won’t be charged a foreign currency fee on your international purchases. And if you have spent at least $500 on pre-paid transport, tours, and/or accommodation on your NAB card and you were 90 years or under before you take off, you could be eligible for complimentary overseas travel insurance.1 For the full list and any limits and excesses that apply, please read our NAB Card Insurance Policy Information Booklet (PDF, 420KB).

Redrawing on your home loan

Are you ahead with your scheduled repayments on your home loan? If you’ve put in a bit extra each week and are in the black, you could consider a loan redraw. While it's a less common way of paying for a trip, it’s money you’ve already managed to set aside.

Depending on the loan, keep in mind there can be restrictions. For instance, you can’t redraw from a fixed-rate loan – so it’s best to check your eligibility by having a chat to a banking specialist in branch or call us on 13 78 79 to discuss your redraw options.

After you redraw money from your home loan, you must continue to make your regular repayments. But you must also remember that the interest part of your repayment will increase because you are now paying interest on a higher loan amount.

Ready to travel with freedom?

There’s something really satisfying about paying for your overseas trip with your own hard-earned money. Plus, it’s a great way to enjoy some time off – without having to worry about heading into debt.

For more handy information, head to our Travelling overseas page.


Important information

1 A qualifying purchase is required to get the benefits of the complimentary insurance. The terms, conditions and exclusions of the complimentary insurances are specified in the NAB Card Insurance policy information booklet 13.03.18 (PDF, 420KB) and may be amended. The complimentary insurances are issued by QBE Insurance (Australia) Limited ABN 78 003 191 035 to NAB. Access to the benefit of cover under the NAB card insurances is provided to eligible NAB cardholders by operation of s48 of the Insurance Contracts Act 1984 (Cth).

The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, NAB recommends that you consider whether it is appropriate for your circumstances. NAB recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.

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