The Finch Formerly Known As Gold

14 October 2005

We have ways of making you save

The American savings rate is somewhere between not much and nil, which has prompted a couple of card issuers to introduce cards that put some money aside.

The simpler of the two is the American Express One card, which has a typical 1-percent rewards package — but which takes those rewards and deposits them in a savings account in your name. (Currently it's paying 3.15 percent.) You can, of course, deposit funds in the account on your own. Amex stakes you to $25 to open the account, and waives the $35 annual fee the first year.

If you have a debit card from Bank of America, you have a new option called Keep the Change, in which debit-card transactions are rounded up to the next higher dollar and the overage is deposited to savings. (If you spent, say, $82.45, B of A will debit your checking account $83 and drop 55 cents in savings.) As an incentive, B of A will match the savings deposits for the first 90 days, and kick in five percent a year thereafter (maximum $250).

Posted at 6:22 AM to Common Cents

The second one sounds better. As long as it is no fee.
With the AmEx card you would have to spend $350,000 for the 1% to cover your annual fee. Hmm, if I pay CASH I'll be $35 a year RICHER!!!!

Posted by: Dwayne "the canoe guy" at 6:44 AM on 14 October 2005

Oh wait. $35 is 1% of $3,500 not $350,000. Still, I hope to not charge 3500 a year to maintain fees on a card. But, what's 2 decimal points between friends?

Posted by: Dwayne "the canoe guy" at 9:59 AM on 14 October 2005

In this case? $346,500.

Posted by: Matt at 11:07 AM on 14 October 2005