Can anyone tell me how this works?

??? just from what it sounds like, it sounds like a rip-off!

these surgeries are only decreasing in cost, and if you are paying ahead of the surgery anywhere past just enough time to reserve a spot (maybe a month or two out) you are being cheated.

save your money in an interst-bearing account - the best you can find. Earn interest while you save - do not pay it to someone to earn from your money!!!!

better yet take a look at your finanaces and be sure there isn't somewhere better to put this payment - for instance I have an aquaintance who recently mentioned saving for her surgery is delaying 1) paying off her car note and 2) paying off a credit card.

the car note was almost resolved and was a reasonable rate - so she is keeping with that and paying it off on her existing schedule - BUT her credit card is at 26% interest, and she owes over 3, 000$ - which is about what she needs to finish covering her surgery.

She was going to save 3000 while making a 2x minimum payment on the card...and had been "saving" for 8 months when I found this out!

She is now dropping the savings for the surgery directly into the card, and an additional 600$ that her mom is gifting her for airfare, which covers all but 300$ which she will have by her NEW surgery date, which will be July 2nd - months ahead of what she would have been able to do - and saves all those cc charges she would have paid, while the $$$ was just sitting there.

Getting off the soap box...my point is, I guess, just look at all of your resources, and go from there - saved money in the face of debt is often wasted money (yes I know but, yes, I know).