As affordable as air travel and accommodations have become, saving for travel can still be an ordeal in and of itself. Whether you’re planning a birthday weekend in Siargao or a long-awaited European vacation, building a fund that grows predictably is going to be key to hitting the savings thresholds needed for an enjoyable trip.

For many Filipinos, a time deposit is one of the easiest ways to do this. It’s secure, it earns higher interest than typical savings accounts, and it helps one commit to their goal by blocking or penalizing withdrawals before the fund reaches maturity.

Time deposits come with a variety of terms, ranging from multiple-year deposits at some traditional banks to more accessible options as short as 3, 6, or 12 months with products like Maya Time Deposit Plus. Maya’s flagship time deposit offering, for example, also allows consumers to earn up to 6% per annum if they hit both their target amounts and term.

Both long and short-term options have their advantages, but the right choice really depends on your savings habits and how flexible you need your money to be. Let’s break down the differences and so you know which one fits your travel plans.

Short-Term Time Deposits: When You Need Your Money Sooner

Short-term time deposits generally mature within a year or shorter, with many of these offerings being designed for savers who need quicker access to their money. These short-term products still earn better interest than a normal savings account, but they may not encourage long-term savings for expensive trips and experiences.

Short-term deposits work well in the following scenarios:

  • For trips happening within a few months. If you’re preparing for a vacation within the year, say a December family trip or a weekend getaway, a shorter timeline can make a lot more sense.
  • If you don’t want to be locked in for too long. With time deposits, you might risk being short on cash if a short-term emergency or opportunity comes up before maturity. Short-term options offer much quicker availability, easing the risks of serious cash shortfalls.
  • To snatch airfare promos as they pop up. If a seat sale suddenly appears and your deposit matures soon, there’s a better chance you’ll have quick access to your funds before the promo ends.
  • Ideal if cash flow changes frequently. If you’re a freelancer, small business owner, or otherwise depend on an irregular income, you may want to manage your cash flow fluctuations with shorter commitments.
  • You’re experimenting with time deposits for the first time. Any new-to-you savings or investment is going to present some familiarization challenges. Regulated time deposits of any length are generally quite safe, but you may be comfortable limiting your commitment, to start. A time deposit product that lets you add funds can be ideal, since you can increase your commitment alongside your growing comfort levels.

Long-Term Time Deposits: Great When You’re Planning Far Ahead

Long-term time deposits typically stay locked in for longer periods, about a year or more, depending on the product. These are designed for people who are planning a major trip in the future.

Choose long-term time deposits for these situations:

  • Ideal for bucket-list trips. Planning a two-month European tour in two years? A longer-term lock-in may support a structured saving approach. Alternatively, you can just choose a shorter term, then renew it as your needs allow. Either way, a time deposit product that lets you add whatever extra cash you have is going to be ideal.
  • You protect your money from impulse withdrawals. Long-term deposits can help remove the common temptation to “dip into” your travel fund, since withdrawing before maturity typically isn’t allowed or is heavily penalized.
  • Better for building a larger travel fund. For most Filipinos, major vacations with deluxe experiences require time and higher savings. A long-term commitment encourages you to continuously grow that amount until it reaches maturity. If this sounds like you, look for newer time deposit options that let you add to your fund at any time.
  • Useful for chronic overspenders. If you find it hard to stay disciplined with your spending or savings, a long-term deposit may be perfect for you. These accounts keep your money tucked away, giving you the opportunity to develop the good money management habits you need.

How to Choose Based on Your Travel Style

  • For frequent domestic travelers. A short-term time deposit can be perfect, since it helps you build funds quickly for recurring trips without locking up money for too long.
  • For annual barkada or family vacations. A mix of both may be warranted. Consider setting up a short-term time deposit to capitalize on airfare and accommodations sales and a long-term one for major group experiences.
  • For once-in-a-lifetime destinations. Long-term deposits can match the long runway needed for visas, itineraries, and big-ticket expenses.

Which One Would You Choose?

Both short-term and long-term time deposits can offer a secure foundation for your travel fund. Still, you will need to fully align your chosen deposit length with your timeline, your real (not imagined) discipline level, and the kind of travel experience you’re after. There may be other funding options, but if you’re like many working Filipinos, a time deposit can make it significantly easier to build a travel fund that grows steadily and gets you closer to where you want to be.