Spend so that you can save
Sounds a little convoluted but that’s exactly what banks are helping their customers do. Spending done via credit and debit cards are linked to a savings component. For example, American Express offers a credit card where one percent of the amount spent goes into a high-return savings account.
A similar program by Bank of America for its debit cards works something like this. Every time you make a purchase, the amount gets rounded off to the nearest dollar and the extra money gets transferred to your savings.
However, all said and done this does appear to be a case of penny wise and pound foolish, it is illogical to expects any real savings this way. In fact, consumer activists warn that there is a real chance of us overspending for that feel-good saving. We need to factor in the fee that the credit card transactions attract and the interest on any card payments that you may default in your eager haste to save.
