The Way2Save Savings Plan By Wachovia
by Erik Folgate
Filed under Banking, Investing, Spending and Saving
I was talking with a friend the other day about the Way2Save Wachovia savings plan, and he has had a great experience with it so far. He and his wife were able to save almost $2,000 in less than a year without consciously making an effort to save on a consistent basis. Bank of America had a “Keep the Change” savings program that is similar to this, and I am sure other banks have similar plans, but after reading about Wachovia’s program, I think it’s one of the better automatic savings plans for people that have a hard time saving money. Here’s how it works:
- Sign up for a Way2Save account and any Wachovia Checking account and start saving. We’ll transfer $1 from your checking account to your savings account when you:
- Use your Wachovia Check Card to make a purchase
- Pay a bill online, including through Online Banking with BillPay note 1
- Make automatic payments
- Get paid to save with Way2Save
- Earn a premium Annual Percentage Yield (APY).
- Receive a bonus just for saving.
- Save even more, by setting up recurring transfers for as little as $5 (up to $100) every month for even more savings and interest.
Here is the annual percentage yield breakdown:
Year 1: 5% of the eligible balance, up to $300
Year 2: 2% of the eligible balance, up to $300
Year 3: 2% of the eligible balance, up to $300
Fees Associated With the Account:
- Account Closing Fee – Waived
- Monthly Service Fee – Waived first year and thereafter with qualified transactions (automatic transfers), otherwise $5.00
- Teller Withdrawal Fee – First three per month free; $3.00 each thereafter
- Person-to-Person Transfer Fee – $3.00 per item
- Overdraft Protection Transfer Fee – Waived with linked checking and Way2Save accounts, otherwise $10.00 per transfer
So, the APY isn’t great, but it’s still a no-brainer way to save some extra cash, especially if you want to develop an emergency fund without thinking about it. Also, there could be potential for getting nickel-and-dimed by some of those fees, but most of them are waived if you are active with the account.
Are you using this program? If so, we’d like to hear from you. What is the good and bad about this program?
I love my Way2Save… The APY is way better than other savings accounts at brick-and-mortar banks, and I’ve been able to save about $1,500 pretty effortlessly this year.
The only major drawback I’ve encountered is that other than the monthly automatic transfer of up to $100 and the $1 transfers, you cannot make a deposit into the account. This pretty much demands an additional savings account for heavier savings (I have one at an online bank). I mostly use my Way2Save as a mini-emergency/life happens fund since it’s more accessible (linked to my checking) than my larger emergency fund (~3 days to tranfer funds).
the keep the change program at bank of Amercia is better, it would round up to next dollar for you. you actually make money.
Sounds like an interesting plan, but I still can’t bring myself to bank at one of the big guys. I have an account with my local credit union. They offer a nice Rewards Checking program that gives me 2.5% APY up to $25,000 as long as I use my debit card 12 times a month, sign up for e-statements and log in to online banking once a month. When I originally signed up in 2007 the rate was 6%, but hey we all know what happened there. 2.5% is still great and I get it for doing what I would have anyway. Oh yeah, I also get my ATM fees refunded if I meet those requirements and I can talk to a live person as much as I want and use most other credit unions to deposit and withdraw my money for free. Look around for these offers, you might be surprised at what your small local bank can offer.
Whoah, this program sounds like it forces you to save, whether you want to or not. Could be a great thing for some of us, as saving is not an easy thing to do. But it doesn’t actually make you any many like other deals out there as it just moves money from one account to another. I’ll stick to those savings accounts that offer better rates & force myself to transfer money instead of letting the bank do it.