Disney Savings Account

[Tinkerfan2005]

So we went to WDW in November and the kids ask nearly every day when we are going back. I have a plan to go back in about 5 years, this time in Feb or March, to celebrate the kids' birthdays. I have been looking at opening a savings account through Disney. Has anyone done this? Is 5 years too long to have one? Thanks!

 

[kondjott]

I've not used the Disney savings account, but one alternative you might look at is a high-yield savings account, like through Ally Bank. You can transfer money to it on your own schedule, it's separated from your other funds, and you'll earn decent interest on what you put in.

 

[1st*toright]

I'm not sure what the advantage of a DVA would be if you are talking about that long a period - the only benefit I really see is that it gives you 2% back for every $1000 you spend, but that promotion is only through 2017 (although they might extend it). If you put money in a high yield account it will at least be working for you during the 5 years. You should still be able to set up automatic payments into that account, if you want to, so that it would be "out of sight, out of mind".

 

[MrInfinity]

I use the Disney Vacation Account all the time. But not as a savings account. It's more like a big gift card that you keep adding to. It does not earn interest. You do get the 2% bonus per $1000, but you get the same whether you had your money in there for 120 days or 5 years. So if you have time on your side, I would start a stock account or something aggressive. 5 years is a long time to have money earning nothing. Then about a year out from your estimated trip, figure out the timing to run your funds thru the Vacation Account to get your 2% bonus.

Once you put money into the DVA it's inconvenient to get it out except to spend it on Disney trips, so there is that feature that it makes one view money as really allocated to vacation and not available to spend. If that's important to you... Also by giving you the chart of your progress it makes you want to contribute. These are intangibles that might encourage someone to reach their goal sooner than 5 years.

 

[Marionnette]

So we went to WDW in November and the kids ask nearly every day when we are going back. I have a plan to go back in about 5 years, this time in Feb or March, to celebrate the kids' birthdays. I have been looking at opening a savings account through Disney. Has anyone done this? Is 5 years too long to have one? Thanks!

I would not use the DVA as a long term savings account. To begin with, their IT has been known to have problems. Accounts can go missing. Their help desk is slow to respond to issues. Deposits can go unaccounted for.

But beyond that, you're tying up your hard-earned cash in Disney money. Yes, you can get that money back on the original form of payment - eventually. It takes a considerable amount of time to accomplish and can be especially maddening if you needed that money for an emergency.

There is also no guarantee that Disney will still be offering a $20 GC for every $1000 spent on qualifying purchases when you finally pay for that vacation 5 years from now. The current offer is set to expire 12/31/2017. Meanwhile, interest rates on saving accounts are rising. You may be better off putting your money into a separate savings account which is dedicated to vacations.

 

[laceltris3]

I've not used the Disney savings account, but one alternative you might look at is a high-yield savings account, like through Ally Bank. You can transfer money to it on your own schedule, it's separated from your other funds, and you'll earn decent interest on what you put in.

Or you could open a DVA with a minimal amount, save in a high-yield savings account, and then transfer the rest to the DVA right before you pay, so you get the interest plus the 2%. I add Disney gift cards to it opportunistically, like right now with the Kroger 4X fuel points on gift cards that I pay for with my credit cards that gives unlimited 5% cash back on GCs, or buying discounted gift cards at BJs with the Discover 5% cash back.

We take a Disney cruise every year and are venturing into Adventures by Disney. There is no risk that we will not spend the $ on a Disney vacation.

 

[Tinkerfan2005]

Thanks everyone!