Charge It -- and Save

Saving money can be tough, so new credit cards are helping us do it while we spend.

More on:

• Money
• Get Out of Debt
• Family Life
• Frugal Shopping

With Bank of America's Keep the Change program, every time you use your debit card, the price is rounded up to the nearest dollar and your change is put in a savings account. Example: You charge a $2.25 cup of coffee, your card gets charged $3, and 75 cents goes to your savings. Repeat daily, and you'll save nearly $300 by year's end. Bonus: For the first three months, the bank will match your savings; after that, it's 5% a year.

Use the American Express One card, and 1% of your eligible purchases will be deposited into a savings account with a competitive interest rate.

So is this a good idea? If you use the card smartly. "These programs enable you to save when you otherwise might not," says Greg McBride of Bankrate.com. "If you're just making purchases that you'd make anyway, this will build some savings in the process."

From Reader's Digest - January 2006

 

• 16 Ways to Save $100
• Simple, sensible ways to save money.
• 
• How to Get Out of Debt and Get Rich
• With the right attitude and a little credit know-how, anyone can climb out of the hole and stay debt-free for life.
• 
• Starting Your Financial Year Right
• 

Sponsored Links