Keep the Change
In late 2005 Bank of America introduced a new program for its customers called “Keep the Change“. It works like this: Every time you buy something with a BofA Visa debit card, the bank rounds up your purchase to the nearest dollar and transfers the difference from your checking into your savings account. It also matches 100% of transfers for the first three months, and 5% of the annual total, up to $250 a year.
Sounds pretty good, right?
Well, of course, there’s a catch. Here’s the fine print:
Matching funds are paid annually after the anniversary of enrollment on accounts that remain open and enrolled. Savings accounts eligible to receive matching funds include, but are not limited to, Regular Savings, which requires a minimum opening balance of $25 and pays a variable Annual Percentage Yield that was 0.20% as of 10/07/08. Money Market savings accounts are also eligible. Fees could reduce earnings.
The promotional matching funds will be reported to the IRS on Form 1099.
The savings account where your money is likely going has a 0.2% APY! What’s more, since they only make deposits to your account annually, those matching dollars aren’t even compounding.
Bottom Line
While Bank of America may have good intentions here, after you consider the fees and the low interest rate, you’d be better off putting your spare change in a high yield savings account such as ING Direct. This one’s a dud!
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