Bank of America's Keep the Change is a poor savings account
Sep 8th 2008 4:38PM
Updated Sep 17th 2008 8:54PM
I read about a great example today on the Online Savings Blog where the author digs into Bank of America's Keep the Change saving program to find out that it is riddled with fees and pays only a paltry .2% APY on the account.
Sure Bank of America provides a match up to $250 which could help out some customers, but after you take into account the fees and the low interest rate, using a high yield savings account becomes a much better answer. Other than the Bank of America match associated with this account, the real draw for a user is the ease of saving associated with rounding up every purchase.
If you still want to use the roundup method you can use Wesabe to track your spending and transfer in your rounded-up amounts at the end of each week, just like one of the commentators over at the Online Savings Blog. Personally, I'd rather automatically transfer a specific amount to an online saving account after each paycheck than base my savings on how many times I spend money. If I saved based on a roundup of every transaction I'm too worried that I would use the savings to justify purchases I don't need to be making!
Personally, I am sick of the excessive use of the asterisk by companies nowadays. I don't think I have seen a commercial or received a mailing for any kind of service lately that doesn't come with more asterisks than Barry Bond's sports record, which is disheartening. I realize that disclosing all of the information about a service is difficult to do in an advertisement, but companies need to quit relying on hard to find fine print to advertise too-good- to-be-true offers. Important information like fees and interest rates should be disclosed at the top of agreements in an easy-to-read table format so that consumers can see them front and center, without having to go looking for them with a magnifying glass!