Wachovia introduces auto-saver program
11 January 2008 | 1939 views | 0
Wachovia is helping American consumers with at least one New Year's resolution with the launch of Way2Save, a new and innovative savings program that makes it easy and automatic to save money.
Way2Save encourages customers to save by transferring $1 from their checking account into a new special savings account each time they make a Check Card purchase or an electronic payment. With Way2Save, customers earn a 5.00% Annual Percentage Yield (APY) plus a 5 percent annual bonus in the first year, and a 2.00% APY and 2 percent annual bonus in the second and third years. After three years, a competitive, traditional savings rate is applied. In addition, customers can choose to transfer up to $100 a month to the special Way2Save savings account to see their savings grow even faster.
"Wachovia is committed to helping Americans take charge of their financial lives," said Ken Thompson, chairman and CEO of Wachovia Corporation. "Our research shows that consumers want tools and education to help them save, and an easy way to start saving. With a competitive interest rate and bonuses, we believe Way2Save is exactly what consumers are looking for to help them save."
Over the past two years, Wachovia conducted extensive savings studies to better understand the pressures consumers face and their priorities when it comes to saving. Way2Save was developed as a result of the findings, which show that consumers have difficulty saving on a regular basis. The studies also found that consumers want and need access to attractive interest-bearing savings accounts and assistance from their financial institutions in getting started.
"Way2Save pays customers for doing things they already do, like using their Check Cards or making payments online," said Kathryn Black, savings director for Wachovia Bank, N.A. "It also lets them put away additional money each month through automatic transfers to savings. Whether they're saving for emergencies, education or a dream vacation, Way2Save helps customers reach their goals faster by saving dollars. It also motivates customers to save by offering an attractive rate of interest and annual bonuses for the first three years."
Two Examples of How Way2Save Works
If a customer makes 23 monthly Check Card purchases, four monthly electronic payments and a recurring monthly transfer of $25 into savings, for example, that customer can expect to save $671, including interest and bonus, during their first year in the Way2Save program. Meanwhile, in the first year, a customer who makes 10 monthly Check Card transactions, two monthly electronic payments and a $100 recurring transfer each month can save $1,446.
In addition to Way2Save, Wachovia has launched a savings education program that includes a series of savings seminars and a national savings study conducted by the Consumer Federation of America and Wachovia. According to the study, more than half of respondents admit they are not saving adequately. To help increase the number of Americans who are saving, Wachovia's seminars will provide savings tips and motivation. Wachovia will offer the seminars initially through employers across the country as part of its Wachovia At Work® program. It also will work with nonprofit and community partners in other locations to reach more consumers. The seminar content was developed in conjunction with the Consumer Federation of America and its America Saves campaign (americasaves.org).
* Customers can grow savings fast with Way2Save, because the program transfers their dollars from checking to savings and offers attractive yields and bonuses.
* Way2Save offers three ways to save:
-- Check Card purchases.
-- Electronic payments or automatic debits.
-- Optional transfers of up to $100 per month into savings.
* Way2Save offers high yields for the first three years of the program:
-- In year 1, customers earn 5.00% APY.
-- In years 2 and 3, customers earn 2.00% APY.
-- After year 3, customers earn a competitive, traditional savings rate.
* Way2Save encourages customers to keep saving their money by offering anniversary bonuses for the first three years. Customers enrolled in the program earn a 5 percent annual bonus in year one, up to $300, and a 2 percent annual bonus in years two and three, up to $300.