Wednesday, September 29, 2010

Wachovia's Way2Save account

I feel the need to share this because it's such a good deal compared to other banks. (I am in no way affiliated with Wachovia/Wells Fargo and do not stand to profit from blogging this.)

I joined Wachovia's Way2Save program six months ago when I started a part-time job. All of my hustle money goes here.

The money is deposited into a checking account. Each month you can choose how much to transfer over to the Way2Save savings account ($100 max each month), where it earns 5%  interest for the first 12 months. At the end of 12 months the 5% interest rate goes away, but there is a one-time 5% bonus on the balance at the 12 month mark. Additionally, any purchases made with the checking account will move another dollar to the Way2Save account.

If I'm doing the math right, I'll earn $27.89 in interest, and the 5% bonus on $1227.89 ($61.39) brings me to $1289.28.

Not bad for depositing $100 each month for a year. Even if you put all $1200 into the checking account the first month, that's still a 7.44% return on the investment.

There are a few small catches, but with diligence they can be avoided. After the 12 month intro period, the account has a $5 monthly fee. This can be avoided by closing the account (no fee) at that point. The checking account is free but I'm not sure if that continues beyond the introductory period.

Disclaimer: I can't see anything about the 5% bonus on the website so I'm not sure if it's still in play. Ask a Wachovia rep if necessary.

My one beef with Wachovia: my local branch is only open 9-noon on Saturdays. I could have used the ATM to make a cash deposit, but I have not activated my card so I don't spend any of that money.

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