Personal Development for Smart People Forums

Personal Development for Smart PeopleTM Forums

 

Go Back   Personal Development for Smart People Forums > Personal Development > Business & Financial

Notices

Business & Financial Career, work, money, income generation, personal finance, investing, debt, wealth, abundance, entrepreneurship, sales, marketing, SEO, commerce, economics, blogging, podcasting

Reply
 
Thread Tools Display Modes
Old 12-05-2006, 09:51 AM   #1 (permalink)
Member
 
Join Date: Nov 2006
Location: Hull (UK)
Posts: 58
Radek Pilich is on a distinguished road
Default Saving money? Rounding your bank card purhcases

A bank card which automatically rounds up customers' purchases to the nearest pound and then pushes the extra cash into savings is being launched.

The Lloyds TSB Save the Change scheme is being marketed as a modern equivalent of a penny jar - an easy way to put money away for a rainy day.

On a £19.73 debit card transaction, the card holder would be charged £20, with 27p going into savings.

BBC NEWS | Business | Bank card to 'top up' savings pot


Looks like good idea, what you think about it?
Radek Pilich is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Old 12-05-2006, 01:22 PM   #2 (permalink)
Senior Member
 
Join Date: Nov 2006
Location: Toronto
Posts: 201
Dimitry is on a distinguished road
Default

That is the most brilliant idea I've heard in a while heh...I'd sign up if my bank came out with that.
Dimitry is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Old 12-05-2006, 01:33 PM   #3 (permalink)
Family Member
 
Join Date: Nov 2006
Location: Berlin, Germany
Posts: 8,749
Brutha has much to be proud ofBrutha has much to be proud ofBrutha has much to be proud ofBrutha has much to be proud ofBrutha has much to be proud ofBrutha has much to be proud ofBrutha has much to be proud ofBrutha has much to be proud ofBrutha has much to be proud of
Default

What is the advantage of this over putting simply 10%(or some other number) each month into savings?
Brutha is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Old 12-05-2006, 01:48 PM   #4 (permalink)
Senior Member
 
Join Date: Nov 2006
Location: Central MD
Posts: 385
Doku is on a distinguished road
Default

I think that it's a great idea for the banks.

First off, it deposits into a savings account at their own bank... so it forces you to invest more money into their bank, which they make money on. It is very hard for banks to get people to open accounts with them. This is a way to easily get hundreds or thousands of new accounts opened.
Secondly, depending on how they handle it at the credit card level, stores are charged a processing fee which is a certain percentage of the transaction... The stores may scream bloody murder, but the banks might be charging them the processing fee on the extra "rounded up" money as well.
Doku is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Old 12-05-2006, 02:19 PM   #5 (permalink)
Junior Member
 
Join Date: Nov 2006
Posts: 29
MamaDuck is on a distinguished road
Default

Bank of America in the US has been doing this for over a year now. It's nice, plus they have a matching plan where they match the amount you put into savings via this plan up to a certain amount.
MamaDuck is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Old 12-05-2006, 02:46 PM   #6 (permalink)
Junior Member
 
Join Date: Nov 2006
Location: Norway
Posts: 26
birger is on a distinguished road
Default

Quote:
Originally Posted by Brutha View Post
What is the advantage of this over putting simply 10%(or some other number) each month into savings?
I guess it's easier to calculate your spendings from the card statement.
Plus, it's forced saving, which is good, for those people who can't put away money by their own free will...
birger is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Old 12-05-2006, 04:27 PM   #7 (permalink)
Junior Member
 
Join Date: Nov 2006
Posts: 26
mattinglot is on a distinguished road
Default

I think this is brilliant too. It's another way to save money that would otherwise just disappear without you retaining any noticeable value from it. I would definitely use it if it were available to me, but on top of the 10% savings not instead of.

As for advantages over other methods, beyond the obvious forced-savings: I see this as the creation of a self-imposed "spending tax" that discriminates against small "insignificant" purchases that add up overtime (53 cents change is a relatively big percentage of 5 dollars, but not of $50), helping to perhaps dampen the effect on the wallet from the unnecessary little purchases like fancy coffee drinks and eating out too much that most of us make.

Last edited by mattinglot; 12-05-2006 at 04:32 PM.
mattinglot is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Reply

Bookmarks

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off



All times are GMT. The time now is 04:12 AM.


Powered by vBulletin® Version 3.8.2
Copyright ©2000 - 2012, Jelsoft Enterprises Ltd.
Search Engine Optimization by vBSEO 3.1.0
Copyright © 2010 by Pavlina LLC