We’ve been tipped off on a solid savings account offer for residents living in Mississippi and Alabama. It’s called a “Save’N Up” account and it comes with an annual percentage yield of 5.50% APY!
The account isn’t a traditional savings account though — it’s actually more closely related to something like “Keep the Change” by Bank of America.
Here is how it works:
After every debit card purchase you make, Navigator Credit Union will round up to the nearest dollar and charge your checking account that amount. They will then take that remainder and deposit it into this savings account. These small increments can gather up fairly quickly though and all funds in this account will receive the 5.50% APY.
Navigator Credit Union’s website does not go into detail on this account, however, we spoke to a representative today and were provided with the details.
Unlike most savings/checking accounts with exuberant interest rates, this one comes with no caps or maximum balance allowances. The account will continue to earn 5.50% regardless of how much money is stashed away in it.
How much can you earn?
To get a better idea of how much one could actually stack away in an account like this let’s assume you use your debit card for breakfast, lunch and two other purchases each day. Let’s say your morning coffee/breakfast cost $4.20 – that’s $0.80 plopped into ‘Save’N Up’, then let’s say you bought lunch for $7.50 ($0.50 plopped into Save’N Up), and two other purchases for an additional $1.50 added to the savings account. That’s a total of $2.80 for that day. Obviously this amount can change quite dramatically depending on the frequency of your debit card purchases, but based on this scenario one could pretty easily build up the account at a rate of $30-$50 per month – all of which will be receiving 5.50% annually.
This is a decent account for individuals who have a hard time setting away savings each month. This automated system allows you to set away some cash at a decent rate (and with a respectable interest rate) without having to think about it. However, we believe there are a couple other online banks offering more enticing purchase-based rewards with their accounts. For example, Perkstreet Financial simply gives you between 1% and 5% cash back on every purchase made with their debit card – which can add up to an additional $600 per year for most families (according to their calculations).
Visit our top checking account promotions of the year to see our favorites!