The coldest winter months are the time to start saving for your summer vacation.
By planning now for a week exploring the sites of London and Paris, or trekking around Orlando’s theme parks, you can avoid racking up credit card debt on airline tickets and hotel rooms when warmer weather rolls around.
While some travel agencies allow you to layaway vacation packages, that can be risky business. You’ll typically wind up paying a penalty if you need to cancel or change your travel plans.
If a trip to a Disney resort or a Disney cruise is on the top of your wish list, the mighty mouse is making it easier for you to save, rolling out a Disney Vacation Account in conjunction with JP Morgan Chase.
It helps put you on the right track by allowing you to save up for your vacation. You can make one-time or recurring contributions to your account, including via your debit card. And if you suddenly decide you’d rather go skiing in Aspen, you can get your account balance refunded.
But there are definite downsides.
If you opt to make deposits using your credit card, you run the risk of racking up big interest charges if you carry a balance on your card.
You also won’t earn any interest on your account, though you will receive a $20 gift card for every $1,000 you spend on your vacation. That’s equivalent to just 0.02% APY.
Far better savings choices are available, regardless of where you want to spend your summer.
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