Bank of America launches saving scheme linked to card payments
In what it describes as an attempt to encourage US citizens to save more, Bank of America, the largest debit card issuer in the US, has launched a new scheme which allows for free saving based on debit card usage.
The leading US bank has called its new program Keep the Change. The scheme works by rounding up customers' debit card spending to the nearest dollar and then placing the difference between the amount spent on the card and the rounded figure into a savings account. For example, when purchasing a coffee with a debit card, the difference between the $2.85 cost and $3.00 rounded figure – or 15 cents – would be transferred electronically from the customer's checking account to their savings account. In addition, Bank of America said it will match 100% of the Keep the Change transfers for the first three months. After that the bank will contribute five percent a year. The maximum match is $250 annually. Our customers told us they want a simple way to save, so we created Keep the Change, said Diane Morais, an 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 new scheme will become available to customers throughout the US by the end of October.
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