I was just coming to ask a similar questions so will piggyback here. I have 449, 2020 points that are bankable until 1/31/21 (June UY). I am planning a trip March 2021 using the 7 month window (available to resv in Aug). My concern is if it has to be cancelled after 1/31 for any reason the likelihood of being able to use those points by May 30 will be slim to none. Is it better for me to bank the 2020 now. Will they be available for using in Aug for the 3/2021 trip? Or is it advisable to borrow the 2021 non-banked points, is that even an option if you have banked points? Not sure how this has never come up for me in all these years. Long story short if I have completely confused the situation; is there a way to protect the points when reserving late in your UY.
I had considered renting them on David's site but I think things need to settle down a bit there before I would consider that and don't have time on my side there.
Your intended trip is in March 2021. You have a June use year. When looking at which years' points you will need for a reservation, and whether you need bank or borrow, look only at the dates you will be WDW and ignore the date you will make the reservation.
That March 2021 trip will occur during your June 2020 to May 2021 use year. If you have 449 points in the June 2020 use year, those can be used for that trip when you attempt to reserve in August. If you bank them they will be useable only for a trip that occurs during your June 2021 to May 2022 use year and they cannot be returned to their original use year, so if you intend to use them for the March 2021 trip, you cannot bank them. The only points you can possibly borrow for that March 2021 trip are ones from your June 2021 to May 2022 use year.
The one thing you do not want to do is borrow any points for that March 2021 trip if those 449 points in your June 2020 use year are enough for the March trip. Though there is currently a rule being followed that allows borrowed points from a canceled reservation to be returned to their original use year, that is a temporary covid-related rule and at any time
DVC could return to the normal rule under which borrowed points must always be used by the end of the use year into which they were borrowed. That rule is likely to be returned to normal by Jan 2021. Moreover, there is nothing to indicate that the current rule would actually apply to the cancellation of a March 2021 reservation.
As to cancellation, the possible loss of points is always a risk when you have a reservation that is near the end of your use year. In your situation, you should likely make the reservation using the June 2020 points and then come Jan, you can make a decision as to whether you want to continue with the reservation with the risk of losing points if you have to cancel after Jan 31, or cancel it and bank the June 2020 points.
