Alternative marketing thinking

iCONTRACT

Saving, Really?

Wachovia, one of America’s leading banks, has launched its Way2Save, a high-yield, automatic savings tool designed to help Americans save money. Way2Save claims to help people save money automatically, by using their Check Card the way they normally would and offers a competitive interest rate of 5% APR and real incentives for saving money, like a 5% bonus. However, would this really be the way to save for America? The fine print may not suggest so. While the yield per year may look rather promi-sing at 10%, the maximum one can transfer each month is only $100, totaling a yearly saving of $1200. The 5% bonus is actually a first anniversary special that drops to 2% in year 2 and 3. The other part of the account that has created more confusion is the $1 transfer to savings with every debit card purchase, automated debit, and online bill pay. Though many have assumed Wachovia is paying a $1 bonus on each transaction, the $1 is simply a transfer from the user’s checking account to his savings account. Wachovia will apply the 5% bonus to those $1 transfers, but that’s only $0.05 per debit, or $1/month pre-tax for an active electronic banking user making 20 transactions per month. So will the end result be saving? Something to think about, and while you’re at it, read more.

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