Wachovia Ties New Automatic Savings Product to Debits

Wachovia is making it easier to save money with an automatic savings system similar to Bank of America’s "Keep the Change" program.

Way2Save transfers $1 from a customer’s Wachovia checking account into a new, special Way2Save savings account each time he/she makes a purchase with his/her Check Card or makes a payment via an online bill payment or automatic debit from his/her checking account.

In addition, customers can choose to transfer up to $100 a month from their Wachovia checking account to the special Way2Save savings account to see their money grow even faster.

The savings account will earn 5% in their first year, with an additional 5% bonus (up to $300) paid on the full balance after 12 months.

The interest rate drops to 2% in subsequent years, as does the annual bonus (also capped at $200).

After that, the account will pay "a standard savings rate."

Assuming 23 check card transactions, four online payments, and a recurring transfer of $25 per month, a typical customer can expect to save the following:

In this article, Kathryn Black, savings director for Wachovia Bank, says the product will be supported with TV, radio, print and online media.The program will also be promoted through savings seminars at branches and through its Wachovia at Work program.