Exchange vs Banking

What is the difference, and which is better? Just how does it work? Exchange and Banking your TS that is.

Exchanging and banking, the basics.

Banking means giving up the right to use your timeshare in return for the right to use another timeshare at a later date.

Banked weeks expire after a certain amount of time, depending on the exchange company you use.

Exchanging means trading your timeshare for someone else's timeshare.

Which is better depends on your circumstances. In many cases one must bank a week before it can be exchanged.