Free Money w/ Keep the Change…Almost!
1st let me say that my husband works for Bank of America, but I promise that my opinion about this program is completely unbiased.
Bank of America offers a program called Keep the Change which has to be the easiest way EVER to save money. It basically functions as your electronic penny jar. I remember reading awhile ago, when people were using cash,that change is to be saved and not used to purchase items. It stated that at the end of the day, all leftover change should be placed in a jar and used in emergency situations or for things like birthday and Christmas shopping. Times have changed and most people use a debit/check card for purchases. Some even use credit cards. I don’t have anything against using credit cards as long as the purchases fit into your monthly budget and you are able to pay off the balance to avoid interest charges. Bank of America has taken that ‘save your change’ concept and modernized it.
Here is what Bank of America has to say:
Save automatically with every Check Card purchase you make. Saving is a whole lot simpler when you don’t have to think about it. That’s the idea behind Keep the Change. When you enroll, each time you buy something with your Bank of America Check Card, we’ll round up your purchase to the nearest dollar amount and transfer the difference from your checking account to your savings account. You get to keep the change – so every cup of coffee, tank of gas, or bag of groceries adds up to more savings for you. What could be easier?
We’ll even match your savings1
We’ll match your Keep the Change savings for the first 3 months, to the penny. After that, we’ll continue matching 5% a year. The maximum total match is $250 per year.
I am enrolled in this program, I love it, and have saved over $200 since January. My husband and I take advantage of this program when buying gas and tipping by going over the amount by $.01 instead of rounding to the nearest dollar. Meaning, we always fill up the tank so the total amount is $40.01 or give a tip to make our restaurant bill $33.01. That way, BOA will transfer $1.98 into our account. It does not sound like much, but a little bit here and there adds up.
I have been soooo tempted to spend the money, but I plan on using it for Christmas shopping. I will not spend the money until they have matched my savings for the year. I plan to use this money for Christmas shopping, but it can also be used towards building an emergency fund, paying off debt, or spending money on a vacation. I don’t think this should be your only means of saving money, but it is definitely another thought-less avenue for doing so.
I did read at www.wisebread.com a few minor cons about this program:
- If you overdraw your account for a day, you won’t get matched for that day. Only Bank of America checkcards count, so you won’t get it with a regular co-branded Visa.
- You have to report the promotional matching funds to the IRS (form 1099).
- They don’t start matching right away. According to the CSR, they will match your funds at the end of your anniversary
- You don’t get great interest rates on savings.
- You only make a good deal of money on this if you spend on tons of little items.
The enrollment in this program is not automatic. If you already have a Bank of America account, it is worth the 15 minutes you will spend at the branch or you can enroll online.
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A Checking Account with 4.00% APY…Seriously???
This past weekend my family and I went to an outdoor mall in our area. They were having a custom motorcycle show and also had live entertainment. As we were strolling through the streets, we stopped at one stand that had a bean bag toss. My 9 year old was actually 4 for 4, 1st time all day (that’s my baby J!) But anyway, I started talking to the ladies at the stand and could not believe my ears when they said they had a checking account that earned a 4.00% APY. I am sure you are thinking the same thing I was thinking, “what’s the catch”? Keep reading…
The ladies plugging this deal were from MB Financial Bank. From my brief conversation with the ladies and material they gave me to read, there is no catch, just requirements that I think are realistic.
The account is called the MB Red Checking and it pays interest on your account balance.
The requirements are:
- Use your MB Debit MasterCard®, press “credit” at the checkout terminal and sign for at least 12 purchases each monthly statement cycle.
- Direct Deposit your payroll check (of at least $250/month) or pay one automatic bill payment (like your car or mortgage payment).
- Maintain a $500 average monthly balance.
I guess there are a few catches; you need a minimum of $50 to open the account, if the monthly statement balance falls below $500 you will have to pay a $10 monthly processing fee, they APY drops to 1.00% on balances of $10,001 or more, and they don’t have that many locations and will charge ATM fees. However, you do get 2 free monthly ATM transaction per month and the fees are free is your balances is at least $5,000.
I don’t think I would have a problem with the requirements and restrictions, but my husband works for Bank of America, need I say more. I did tell him about the checking account and he was amazed and quickly changed the subject because he knew where I was going LOL!! But this discussion is not over.
Does anyone have this account? If so, please share your thoughts.