Best account to save for large family trip?

[Kwaschitz]

With no end deadline (beyond "when we have enough money for the trip") - what is our best bet for a savings account? I'd like to maybe accrue some interest on my money as opposed to the current situation (it's sitting in a jar at the moment).

Three households are hoping to go; this is separate from my regular DVC trips.

Talk to me about accounts - savings account? Short term CD type accounts to be cashed out at the end of the term and re-invested and/or saved?

If you were starting with say $1,000 what would you do to earn maximum interest on the money you already have (assuming at least $200 added to the principal within the year - that's probably lower than what would be added, but for safety sake...)

 

[DisneyArie]

When I started saving for our trip, I opened an account with Ally bank, which had the highest interest rate at that time. Interest is paid out monthly.

A CD didn't work for me because I wanted to add to the account over time vs set aside a lump side to gain interest on, and it wasn't worth it to get a 3 month CD every 3 months. I say talk to your banker to assist with the best options. Ally was very helpful.

 

[Maistre Gracey]

If you're stating with a grand, adding $200 a year, and getting less than 1%, Disney prices may increase faster than you are accruing money. Seriously, you may never get there.

MG

 

[DisneyArie]

Oh wow. I completely overlooked the $200 portion. I think that will be a bit tough. My family did $100/wk.

In addition to the savings account, you should look into some other money saving ideas such as the Target Red Card, Ibotta, etc. You can also save by staying offsite and packing food to eat and/or only eating one meal at the park.

 

[Kwaschitz]

If you're stating with a grand, adding $200 a year, and getting less than 1%, Disney prices may increase faster than you are accruing money. Seriously, you may never get there.

MG

The $200 is a *minimum* for how much could go in the second half of *this* year, not a yearly amount that would be saved; we are also DVC, but we own points for the needs of my family of 3 which isn't enough for a 4-7 day trip for 9. We will be renting additional points to supplement ours, my family of 3 are AP holders, so all of those cut the cost. Basically, I'm saving enough to add my brother and his family because his kids want to go (the oldest is now a junior in college and no longer cares, the other two are 8 and 14) and this is a promise I made to my dad who wanted to take all of his grandkids before he died of cancer 4 years ago so I am now trying to fulfill his dream posthumously.

 

[ICF]

There are virtually no savings accounts that pay out much of anything. Honestly -- even if your balance were $10K, the interest different between something paying at 1.25% and 0.75% is only about $50.

While $50 is $50 -- no savings account out there is going to payout enough in interest to make much of a difference, since a Disney Vacation is likely going to increase at a rate much faster than your interest pays out.

 

[Marionnette]

The $200 is a *minimum* for how much could go in the second half of *this* year, not a yearly amount that would be saved; we are also DVC, but we own points for the needs of my family of 3 which isn't enough for a 4-7 day trip for 9. We will be renting additional points to supplement ours, my family of 3 are AP holders, so all of those cut the cost. Basically, I'm saving enough to add my brother and his family because his kids want to go (the oldest is now a junior in college and no longer cares, the other two are 8 and 14) and this is a promise I made to my dad who wanted to take all of his grandkids before he died of cancer 4 years ago so I am now trying to fulfill his dream posthumously.

I think that it's wonderful that you want to pay homage to your father with this trip. What a nice way to honor his memory!

I recommend using an online saving account. Get one without a debit card and that takes a few days for money to transfer back to your regular checking account. This makes it harder to raid the savings than if it's in a jar on the counter. I have a CapitalOne360 account. It pays 0.75% APR. I think that the AllyBank account that DisneyArie mentioned pays 1.00%. I haven't switched because I'm comfortable with CapitalOne and the difference in the amount of interest earned isn't a big enough incentive for the effort. I've been with CapitalOne since 2003 and I have several accounts. I have regular deposits made by transferring money from my TDBank checking account into the different savings accounts. The process is easy and I never miss the spending money. If you're able to do it, I would try to set up automatic deposits. Just $10/week will net you $520 in savings annually without the interest.

I don't think that a CD ladder would be worth the effort. Aside from having to keep track of when each CD is coming due, you would actually get less than what a regular savings account will earn unless you're getting CDs that are for 18+ month terms.

Maistre Gracey had a point about Disney inflation out-pacing your earnings. Ticket prices have gone up 6%-20% annually for the last couple of years. You might be better off buying park tickets one at a time when you have enough money to make the purchase, rather than waiting until you have the money saved up for the entire family.

 

[verleniahall]

i agree with a PP - I would go in and talk with your bank and they might know what would be the best route to go.
I would NOT suggest a CD since it may be in the middle of a time period when you want to use it.
we use our regular savings account (since we have to have one since we bank with a credit union) and we can just transfer back and forth (max 6 times a month) via online banking but I know that doesn't work for everyone.

 

[QueenIsabella]

Since interest rates are so low, I would opt for what is convenient, versus what might get an extra 0.1% return. If it's easy to do, you're more likely to do it.

Others recommended Ally--if that works easily for you, go for it (I'm only familiar with them for a car loan--they were no trouble to deal with, but I haven't done savings with them).

I would also look at doing transfers every pay check--even a fairly small amount, done regularly, will add up. You could also set up a separate savings account at your regular bank, and deposit "found money" in there. Then, when it reaches, say, $1200, transfer over $1000, and keep adding the smaller amounts (rebate checks, etc.) to the little account.

Good luck with your saving--find a system that works for you, and keep plugging!

 

[SunnieRN]

This may or may not be an idea you would like, but I'm just starting to learn about the Disney vacation accounts. You estimate the cost of your trip and start adding money to the account. When you use the money to book a trip, you use the account to pay for it and you get Disney gift cards. Your money needs to be in the account for at least four months to 'accrue a gift card' but it may turn out to be more than interest pays right now.

Also, I love DVC resorts. My favorite is Kidani Village, but for this trip have you considered a Wilderness cabin? It may be cheaper than extra points, but in not sure what you can buy those for.

I think it's wonderful that you want to do this trip in memory of your Dads wishes!! There's a thread on this board called "One year to save". The original poster is paying for a trip to Paris and a WDW trip, for her family with 'found money'. If you read the thread you will get tons of great ideas!!

 

[hsmamato2]

another option since most banks are about the same for % earned.... there are quite a few banks that offer incentives to open an account, sometimes hundreds of dollars bonus... that way you get a little boost to your savings...

 

[tvguy]

With interest rates the way they are I don't think it matters what financial institution you use, it's more important you set up a regular savings plan and stick to it.
I found paperwork from a CD I had in 1982 that was paying 15%, of course mortgage rates were 17% then.

 

[DisneyArie]

another option since most banks are about the same for % earned.... there are quite a few banks that offer incentives to open an account, sometimes hundreds of dollars bonus... that way you get a little boost to your savings...

Oh yeah! I think Chase does that.