The next time a cashier hands you your change, think about what you would normally do with that small handful of coins. Odds are, you’d drop them into a pocket or bag, soon to be forgotten. But what if, instead of being lost to the bottom of a purse or a washing machine, those coins had the potential to grow and make you more money? That’s the power of Round Up Savings.
Round Up Savings exchanges the nuisance of loose coins for the convenience and utility of a savings account. The next time you make a debit card transaction, this feature can simply round your purchase up to the nearest dollar, and rather than dropping the change into your pocket, deposit it into your savings account.
But does it really make a difference in your savings? Absolutely – and here’s how.
The Round Up Savings Difference
According to the TSA, travelers accidentally left behind more than $35,000 in spare change in 2019. While a few pennies here and there may not seem to make much difference, imagine if that entire $35,000 had instead been rounded up into a high-yield savings account that earned 2% APY* monthly. In one year, that balance would have grown to $35,706.45 – a more than $700 gain!
While chances are that you won’t find $35,000 in spare change, you can still put your money to work with Round Up Savings and earn interest on your money.
Benefits of Round Up Savings
If you’re still on the fence about Round Up Savings, here are a few additional benefits to consider:
1. Accomplish Your Financial Goals Faster
We’ve all experienced the challenge of saving toward a financial goal for weeks, months or even years, only to find that you’re not making progress as quickly as you’d like. The good news is, no matter what your next big purchase is, Round Up Savings could help you get there faster.
For one thing, it keeps you from losing spare change. Instead, you can round up and transfer your debit card funds safely into a savings account, then spend them later. For another, it makes saving simple and convenient, keeping you on track for your financial goals, even when you’re not thinking about them.
2. Get More for Your Money
Rather than sitting in a change jar, your extra coins could be earning you money! By taking some time to choose the right bank account, you can make sure you’re getting the most out of your savings.
Be sure to look for a high-yield savings account that offers an Annual Percentage Yield (APY) to get the greatest bang for your buck. In some cases, you may even be able to pair it with high-yield checking to grow your money even more.
SouthEast Bank offers Bonus Rate Checking1 and Savings2 accounts, both of which enable you to earn up to 2.01% APY* on your balances.
3. De-Clutter Your Wallet
There’s no question about it – carrying a heavy purse or wallet filled with spare change is no fun. With Round Up Savings, you can make debit card purchases, transfer the remaining change to your savings account and go on with your day.
If you want to de-bulk your wallet even further, consider using a digital wallet, like Apple Pay®, Google Pay® or Samsung Pay®.
4. Simple and Automatic Savings
One of the most challenging things about savings is maintaining the self-control to keep working toward your goals. It can be tempting to spend a few dollars here and there until before you know it, you’ve gone over-budget for the month.
With Round Up Savings, each time you make a purchase, it will automatically be rounded up to the nearest dollar and the change will be deposited into savings. While you should still keep a close eye on your spending, Round Up Savings can help turn every purchase into a small contribution toward your financial goals.
You can even pair your high-yield savings account with a mobile budgeting app to track your goals along the way. SouthEast Bank helps to automate the process even further, with digital spending and budgeting tools built right into our mobile banking app!
Bottom Line
Round Up Savings is a great option to help make the most of spare change you might otherwise forget about. It can help de-bulk your wallet, and with the right savings account, could even help you to earn a return on your balance!
*APY = Annual Percentage Yield
1To earn the bonus rate, each statement cycle the account must be enrolled in eStatements and post and clear at least 15 qualifying debit card transactions of $1 or more. If all qualifications are met during the statement cycle, the account will earn a 2.01% APY on balances up to $20,000 and .20% APY on balances over $20,000. If bonus qualifications are not met during the statement cycle, the account will earn .05% APY. $3.00 Paper Statement fee applies if account is not enrolled in e-statements each statement cycle. Qualifying transactions include point of sale or online purchases using the SouthEast Bank debit card. ATM and cash-only transactions do not qualify towards minimum debit card transaction amount. Fees may reduce earnings. Some fees and restrictions apply. Visit southeastbank.com or ask an associate for complete details. Rates are accurate as of 6.1.21 Rates are variable and subject to change after account opening.
2To earn the bonus rate, the account holder must have a SouthEast Bank checking account with the Round Up feature, the Bonus Rate Savings account must be enrolled in eStatements and 15 round up debit card transactions2 must occur. If all qualifications are met during the statement cycle, 2.01% APY will be applied on the balances up to $10,000 and .20% APY on balances over $10,000 will be credited. If bonus qualifications are not met during the statement cycle, the account will earn 0.05% APY. Unlimited withdrawals at teller window or ATM and 6 pre-authorized withdrawals per month at no charge, including checks, ACH debits and online banking transfers; $3 fee for each thereafter. Fees may reduce earnings. Limit one Bonus Rate Savings account per primary owner tax ID. Rates are accurate as of 6.1.21 Rates are variable and subject to change after account opening.
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Information contained in this blog is for educational and informational purposes only. Nothing contained in this blog should be construed as legal or tax advice. An attorney or tax advisor should be consulted for advice on specific issues.
