Thursday, January 25, 2007

BofA Keep the Change

Bank of America is running a promotion called "Keep the Change" where for every purchase paid with your checkcard they will round up the purchase amount to the nearest dollar and deposit the difference to your savings account. So it's like keepng your extra change in your savings account. Then they will match 100% of the spare change for the first three months and match 5% thereafter. Does this sound like a good deal?

When we do the math, it may not turn out to be so great. I took a look at my own spending habits and this is what I discovered.
  • I have an average of 50 checkcard purchases per month.
  • If you average the spare change on any purchase you get $0.50. That's because the average number from 1 cent to 99 cents is 50 cents.
  • 50 x $0.50 = $25.00 you will be putting aside into your savings account.
  • For the first three months, BofA will match 100% of $25.00 so in three months that's $75 BofA will put into your savings.
  • Thereafter, BofA matches 5% so on average $25 x 5% = $1.25 per month BofA will put into your savings.
  • In one year BofA will put $1.25 x 12 = $15.00
  • $15 is nothing compared to any overdraft or under balance fees you may pay in a year.
Their deal is at:

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