Round-Up Savings
Not too long ago, when cash and coins served as the most standard form of payment, people would save spare change in jars. Once full, the money in these jars could be used for a special purchase or deposited into a savings or investment account. Today, round-ups are the new change jar and ALLIANCE is one of many financial institutions that offers this money-saving feature.
What are Round-Up Savings
What are round-up savings and how do they work to benefit you? Much like the change jar, whenever a transaction is made the amount of the purchase is rounded up to the nearest dollar and the change is then deposited into a savings account. At ALLIANCE, our iSave program deposits these funds into your savings account when the transaction is completed. Other financial institutions may let these small amounts build and then deposit the funds into an account in one lump sum.
Savings from Rounding-Up can Add Up
A couple of cents after each transaction does not sound like much, but you can see the effect on your savings over time. Saving just $5 a week in round-ups accumulates to $260 a year, which can seem insignificant but can provide a nice boost that helps build a savings strategy. Like other savings or investments, round-ups can earn you interest by depositing these small amounts into savings or investment accounts. When done regularly the spare change will only continue to grow larger each time the interest compounds.
Reasons to Enroll in Round-Up Savings
Americans today often struggle with saving money. Over a third of U.S. adults do not have the funds to pay for an unforeseen $400 expense, and a quarter of Americans are without any retirement savings. Whatever the reasons may be, people have trouble saving. Choosing round-ups can be the answer to steadily put funds away without even thinking about it.
Round-ups are a helpful tool that essentially allows you to pay yourself with each transaction you complete. Think of it like tipping yourself; instead of losing money in that moment, you are paying yourself after each transaction, making everyday spending more rewarding.
One of the significant parts of round-ups is that they are automatic eliminating the pain associated with trying to make savings decisions. Choosing to put money into a savings account makes you choose between other potential options on how to use that money, how much of it to save, and then still requires you to transfer funds manually. Once you set up round-up savings, it takes away the hassle of all this, automatically depositing funds into your savings without you having to make the choice of potential alternatives to use that money.
Lastly, round-ups take away the emotional struggle of trying to save money. Whenever you choose to save it puts long-term goals ahead of instant gratification. Saving can be rewarding long-term but often forces you to make choices affecting your current situation, but round-ups deposit gradual amounts of money into savings accounts that you may not even notice. It allows those who struggle with saving money to begin building these habits and benefits those already saving by allowing them to reach saving goals quicker.
ALLIANCE iSave Program
Being a member of ALLIANCE comes with many benefits! By enrolling in our iSave program, you can begin benefitting from these round-ups just by using your ALLIANCE Visa debit card. Every purchase will be rounded to the nearest dollar with the spare change moved to your savings account, allowing you to grow your money and pursue financial goals. Visit our iSave page by clicking here to learn more and enroll to begin rounding up your purchases to reach your savings goal. Also, do not hesitate to stop by any of our seven branch locations across Lubbock or call us today at 806-798-5554 with any questions.
