Comments on: Put Your Savings in Hyperdrive, Part 2: Keep Your Change http://www.consumerismcommentary.com/2008/01/15/put-your-savings-in-hyperdrive-part-2-keep-your-change/ A premiere personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Sun, 08 Nov 2009 07:50:42 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: singlemomindebt http://www.consumerismcommentary.com/2008/01/15/put-your-savings-in-hyperdrive-part-2-keep-your-change/#comment-134947 singlemomindebt Thu, 31 Jan 2008 00:06:00 +0000 http://www.consumerismcommentary.com/2008/01/15/put-your-savings-in-hyperdrive-part-2-keep-your-change/#comment-134947 RE: Bank of America, I have no minimum balance and no monthly maintenance fees with my account, so the Keep the Change deal is pretty good for me. RE: Saving change...I do a combination of saving my change and using my change like EW mentions. I go to my change jar rather than the ATM when I'm driving somewhere and know I'll be encountering a toll booth, for example. It is nice to have the change jar though, because I rarely have cash otherwise, haha. Sarah RE: Bank of America, I have no minimum balance and no monthly maintenance fees with my account, so the Keep the Change deal is pretty good for me.

RE: Saving change…I do a combination of saving my change and using my change like EW mentions. I go to my change jar rather than the ATM when I’m driving somewhere and know I’ll be encountering a toll booth, for example. It is nice to have the change jar though, because I rarely have cash otherwise, haha.

Sarah

]]> By: Cameron http://www.consumerismcommentary.com/2008/01/15/put-your-savings-in-hyperdrive-part-2-keep-your-change/#comment-133647 Cameron Wed, 23 Jan 2008 21:31:13 +0000 http://www.consumerismcommentary.com/2008/01/15/put-your-savings-in-hyperdrive-part-2-keep-your-change/#comment-133647 @ J.C. I agree with you. The introductory matching offer is really the only reason to do it. I regularly transfer funds from my BoA savings account (with its lackluster .2%) to my high-interest savings account (4.85%). For those using my approach, note that you need to "pull" from the savings account, not "push" from the BoA account on the transfer, if you want to avoid BoA's transfer fees. If your high-yield account has transfer fees also, you could always go to your local BoA branch and take the money out physically. (I've been told physical banks still exist.) Two additional downsides I've noticed to the keep-the-change program, for me at least: (1) it tends to spam my online statements, making them much harder to read; and (2) for some odd reason, occasionally the keep-the-change transfers get categorized as "uncategorized transaction" instead of "transfer" by BoA, for reasons that escape me. @ J.C.
I agree with you. The introductory matching offer is really the only reason to do it. I regularly transfer funds from my BoA savings account (with its lackluster .2%) to my high-interest savings account (4.85%). For those using my approach, note that you need to “pull” from the savings account, not “push” from the BoA account on the transfer, if you want to avoid BoA’s transfer fees. If your high-yield account has transfer fees also, you could always go to your local BoA branch and take the money out physically. (I’ve been told physical banks still exist.)

Two additional downsides I’ve noticed to the keep-the-change program, for me at least: (1) it tends to spam my online statements, making them much harder to read; and (2) for some odd reason, occasionally the keep-the-change transfers get categorized as “uncategorized transaction” instead of “transfer” by BoA, for reasons that escape me.

]]> By: J.C. http://www.consumerismcommentary.com/2008/01/15/put-your-savings-in-hyperdrive-part-2-keep-your-change/#comment-133097 J.C. Fri, 18 Jan 2008 12:21:56 +0000 http://www.consumerismcommentary.com/2008/01/15/put-your-savings-in-hyperdrive-part-2-keep-your-change/#comment-133097 I just wrote an article about how much BoA's Keep the Change program costs me. Since the introductory period is over, I only get the 5% match on the change, and a 0.2% interest rate. Since I have to keep a $300 minimum balance, it is really costing me money not to close the account and move the $300 to a high yield savings. In summary, Keep the Change is great for 1 year. You get your match of up to $250, but then you should close your account and use a high yield savings and a cash back credit card... next on my to do list. I just wrote an article about how much BoA’s Keep the Change program costs me. Since the introductory period is over, I only get the 5% match on the change, and a 0.2% interest rate. Since I have to keep a $300 minimum balance, it is really costing me money not to close the account and move the $300 to a high yield savings.

In summary, Keep the Change is great for 1 year. You get your match of up to $250, but then you should close your account and use a high yield savings and a cash back credit card… next on my to do list.

]]> By: chosha http://www.consumerismcommentary.com/2008/01/15/put-your-savings-in-hyperdrive-part-2-keep-your-change/#comment-133050 chosha Thu, 17 Jan 2008 22:22:23 +0000 http://www.consumerismcommentary.com/2008/01/15/put-your-savings-in-hyperdrive-part-2-keep-your-change/#comment-133050 I used to save my coins in a jar, but can no longer do that. In public pay car parks here you can buy and display a monthly pass, but because my workplace has a private car park I don't have that option, which means I need to come up with $5 in coins every workday. My dad used to save 50c coins, but Australia also has $1 and $2 coins. Last year he started saving his $2 coins instead, and when the jar was full he was stunned to realise he'd saved over $1300. The most amazing thing was that neither he nor my mother had missed the extra money, even though they are retired and living on a pension. Shows how little we take notice of that small change and what we do with it. I used to save my coins in a jar, but can no longer do that. In public pay car parks here you can buy and display a monthly pass, but because my workplace has a private car park I don’t have that option, which means I need to come up with $5 in coins every workday.

My dad used to save 50c coins, but Australia also has $1 and $2 coins. Last year he started saving his $2 coins instead, and when the jar was full he was stunned to realise he’d saved over $1300. The most amazing thing was that neither he nor my mother had missed the extra money, even though they are retired and living on a pension. Shows how little we take notice of that small change and what we do with it.

]]> By: DebtKid http://www.consumerismcommentary.com/2008/01/15/put-your-savings-in-hyperdrive-part-2-keep-your-change/#comment-132938 DebtKid Wed, 16 Jan 2008 21:58:43 +0000 http://www.consumerismcommentary.com/2008/01/15/put-your-savings-in-hyperdrive-part-2-keep-your-change/#comment-132938 I signed up for the "keep the change" program at my bank (bank of america). It rounds all my check card purchases to a dollar amount. It's not the fastest way to save, but I think I'm up to like $60 now in my savings account. Once it hits $100, I'll transfer it to my online emigrant direct account. I signed up for the “keep the change” program at my bank (bank of america). It rounds all my check card purchases to a dollar amount.

It’s not the fastest way to save, but I think I’m up to like $60 now in my savings account. Once it hits $100, I’ll transfer it to my online emigrant direct account.

]]> By: Flexo http://www.consumerismcommentary.com/2008/01/15/put-your-savings-in-hyperdrive-part-2-keep-your-change/#comment-132893 Flexo Wed, 16 Jan 2008 14:45:10 +0000 http://www.consumerismcommentary.com/2008/01/15/put-your-savings-in-hyperdrive-part-2-keep-your-change/#comment-132893 EW: That's a good observation. Logic does not always play a part when money is involved. Your assumption is that you have no leakage in your cash spending. That may be true for you, and if so, it's a good thing but not common. Placing the coins in a physical or metaphorical jar keeps the money out of sight so it can be directed towards long-term savings goals -- goals you may not be saving for otherwise. No, it's not earning interest in the jar, but it's not being spent either. One may simply withdraw more cash to keep the level of spending the same, or one may not. There's no "one size fits all" approach to advice. This may not work for you, but it may work for others, encouraging new saving. EW: That’s a good observation. Logic does not always play a part when money is involved. Your assumption is that you have no leakage in your cash spending. That may be true for you, and if so, it’s a good thing but not common.

Placing the coins in a physical or metaphorical jar keeps the money out of sight so it can be directed towards long-term savings goals — goals you may not be saving for otherwise. No, it’s not earning interest in the jar, but it’s not being spent either.

One may simply withdraw more cash to keep the level of spending the same, or one may not. There’s no “one size fits all” approach to advice. This may not work for you, but it may work for others, encouraging new saving.

]]> By: Enough Wealth http://www.consumerismcommentary.com/2008/01/15/put-your-savings-in-hyperdrive-part-2-keep-your-change/#comment-132885 Enough Wealth Wed, 16 Jan 2008 12:56:02 +0000 http://www.consumerismcommentary.com/2008/01/15/put-your-savings-in-hyperdrive-part-2-keep-your-change/#comment-132885 I've never understood the logic of the "save the loose change" concept. Any change I have in my wallet accumulates until I will eventually pay for something with a collection of coins rather than break a new note. If I kept putting loose change in a jam jar I'd be spending more notes instead, so at the end of the year the extra money in the jam jar would be exactly the amount of extra notes I'd had to take out of the ATM during the year... In fact, not getting interest on the coins in the jam jar until I eventually put it in the bank would cost me interest on the extra cash I'd had to withdraw during the year. I’ve never understood the logic of the “save the loose change” concept. Any change I have in my wallet accumulates until I will eventually pay for something with a collection of coins rather than break a new note. If I kept putting loose change in a jam jar I’d be spending more notes instead, so at the end of the year the extra money in the jam jar would be exactly the amount of extra notes I’d had to take out of the ATM during the year…

In fact, not getting interest on the coins in the jam jar until I eventually put it in the bank would cost me interest on the extra cash I’d had to withdraw during the year.

]]> By: Flexo http://www.consumerismcommentary.com/2008/01/15/put-your-savings-in-hyperdrive-part-2-keep-your-change/#comment-132799 Flexo Tue, 15 Jan 2008 19:33:04 +0000 http://www.consumerismcommentary.com/2008/01/15/put-your-savings-in-hyperdrive-part-2-keep-your-change/#comment-132799 Brian: BOA's matching program is a good deal, particularly at 100% for the first free months. The idea here is that you must not fall into the account's traps, like fees for your checking account or minimum balance requirements. Toby: Commerce Bank in my area offers the same free service as your Chevy Chase Bank. A few years ago, I was told I had to be a customer of the bank to use it -- I don't know if that's still true, or if it was never true and a particular teller just didn't like me for some reason. Brian: BOA’s matching program is a good deal, particularly at 100% for the first free months. The idea here is that you must not fall into the account’s traps, like fees for your checking account or minimum balance requirements.

Toby: Commerce Bank in my area offers the same free service as your Chevy Chase Bank. A few years ago, I was told I had to be a customer of the bank to use it — I don’t know if that’s still true, or if it was never true and a particular teller just didn’t like me for some reason.

]]> By: Toby http://www.consumerismcommentary.com/2008/01/15/put-your-savings-in-hyperdrive-part-2-keep-your-change/#comment-132797 Toby Tue, 15 Jan 2008 18:48:29 +0000 http://www.consumerismcommentary.com/2008/01/15/put-your-savings-in-hyperdrive-part-2-keep-your-change/#comment-132797 For those that live in D.C. - Chevy Chase Bank offers free change counting machines at nearly every branch - and you don't need to be a member to use it. Just give the receipt to the teller, and s/he'll give you cash if you don't have an account with them. No sense in using those absurd Coinstar machines, which knock off nearly 10% of your change as a service charge! For those that live in D.C. – Chevy Chase Bank offers free change counting machines at nearly every branch – and you don’t need to be a member to use it. Just give the receipt to the teller, and s/he’ll give you cash if you don’t have an account with them.

No sense in using those absurd Coinstar machines, which knock off nearly 10% of your change as a service charge!

]]> By: ChristianPF http://www.consumerismcommentary.com/2008/01/15/put-your-savings-in-hyperdrive-part-2-keep-your-change/#comment-132795 ChristianPF Tue, 15 Jan 2008 18:08:56 +0000 http://www.consumerismcommentary.com/2008/01/15/put-your-savings-in-hyperdrive-part-2-keep-your-change/#comment-132795 @Brian I didn't know that - I had heard about the BOA deal, but had not heard those details... That makes it a bit more enticing, and helps out BOA by locking customers in for at least a year... Interesting... And for the cash-handlers, Flexo, you are right - it really does add up... I love getting $100 or so, every time I take the jar in... although it isn't, it SEEMS like free money... @Brian
I didn’t know that – I had heard about the BOA deal, but had not heard those details… That makes it a bit more enticing, and helps out BOA by locking customers in for at least a year… Interesting…

And for the cash-handlers, Flexo, you are right – it really does add up… I love getting $100 or so, every time I take the jar in… although it isn’t, it SEEMS like free money…

]]> By: Brian http://www.consumerismcommentary.com/2008/01/15/put-your-savings-in-hyperdrive-part-2-keep-your-change/#comment-132793 Brian Tue, 15 Jan 2008 16:59:56 +0000 http://www.consumerismcommentary.com/2008/01/15/put-your-savings-in-hyperdrive-part-2-keep-your-change/#comment-132793 What you didn't mention is that for the first three months, BofA matches 100% of what you save through Keep-the-Change, and 5% every month thereafter. The only stipulation is that they don't cut you a check until the 1-yr anniversary of you joining the program, and your checking and savings account must be in good standing at the end of the 12 months (e.g. positive balance). So, this July BofA will cut me a check for around $35, which is 100% of what I saved Jul-Aug, and then whatever 5% is of the other 9 months. Free money? Sounds great to me, and since I already had a checking and savings account with them it was totally painless. And nobody says that their (admittedly low-rate) savings account has to be your only one... What you didn’t mention is that for the first three months, BofA matches 100% of what you save through Keep-the-Change, and 5% every month thereafter. The only stipulation is that they don’t cut you a check until the 1-yr anniversary of you joining the program, and your checking and savings account must be in good standing at the end of the 12 months (e.g. positive balance).

So, this July BofA will cut me a check for around $35, which is 100% of what I saved Jul-Aug, and then whatever 5% is of the other 9 months. Free money? Sounds great to me, and since I already had a checking and savings account with them it was totally painless. And nobody says that their (admittedly low-rate) savings account has to be your only one…

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