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Bank of America announced a new program to begin in late October called <A HREF="http://www.bankofamerica.com/ktc">Keep the Change</A> - a new free savings feature tied to a debit card that acts in a similar way to a savings jar without having to deal with all the coins.
When a customer signs up for Keep the Change, the amount of every purchase they make with a Bank of America debit card is automatically rounded up to the nearest whole dollar and transferred from the customer's checking account into their savings account at the end of the day. For example, if a person purchases a $4.75 sandwich with their debit card, $0.25 (the difference between the $4.75 cost and the next whole dollar - $5.00) would be transferred electronically into their savings account.
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In addition, for the first three months, Bank of America will match 100% of the Keep the Change transfers. After the 3 month period, the bank will contribute five percent a year up to a maximum of $250 each year
"Our customers told us they want a simple way to save, so we created Keep the Change," said Diane Morais, Deposits and Debit Products executive at Bank of America. "It's like an electronic change jar. People can now turn those everyday purchases for groceries, gas and meals into a simple way to save."
The program is being launched at a time when the personal savings rate is low. The U.S. Department of Commerce reported that personal savings was negative $61.8 billion in August, compared to negative $100.9 billion in July. Personal savings as a percentage of disposable personal income was negative 0.7 percent in August, compared with negative 1.1 percent in July.
"Keep the Change is a simple way to help you save every day, plus you get a contribution from the bank. This is a great plan to make your savings grow," says financial expert David Bach, #1 best-selling author of The Automatic Millionaire. "People should take every opportunity they can to save money, because it really adds up - and the best way I know to do that is to make your savings automatic!"
When a customer signs up for Keep the Change, the amount of every purchase they make with a Bank of America debit card is automatically rounded up to the nearest whole dollar and transferred from the customer's checking account into their savings account at the end of the day. For example, if a person purchases a $4.75 sandwich with their debit card, $0.25 (the difference between the $4.75 cost and the next whole dollar - $5.00) would be transferred electronically into their savings account.
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In addition, for the first three months, Bank of America will match 100% of the Keep the Change transfers. After the 3 month period, the bank will contribute five percent a year up to a maximum of $250 each year
"Our customers told us they want a simple way to save, so we created Keep the Change," said Diane Morais, Deposits and Debit Products executive at Bank of America. "It's like an electronic change jar. People can now turn those everyday purchases for groceries, gas and meals into a simple way to save."
The program is being launched at a time when the personal savings rate is low. The U.S. Department of Commerce reported that personal savings was negative $61.8 billion in August, compared to negative $100.9 billion in July. Personal savings as a percentage of disposable personal income was negative 0.7 percent in August, compared with negative 1.1 percent in July.
"Keep the Change is a simple way to help you save every day, plus you get a contribution from the bank. This is a great plan to make your savings grow," says financial expert David Bach, #1 best-selling author of The Automatic Millionaire. "People should take every opportunity they can to save money, because it really adds up - and the best way I know to do that is to make your savings automatic!"
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