Banks Are Introducing Innovate Savings Schemes to Get More Customers

National banks as well as regional banks have started announcing new cash incentives and rewards for existing and new customers. A few new websites have come out with even prize programs similar to lottery schemes for those who save their money with them. Still, there is a genuine concern among consumers whether these rewards are really worth anything.

A financial analyst pointed out that banks were offering iPods and other home appliances as incentives for saving with them but they are offering hard cash at present. According to him, this cash incentive offers are generating more interest in customers towards saving.

One of the rewards for savings accounts links the rewards to reward checking. One bank has come out with 0.75% annual yield as saving account reward, along with the 2.01% annual yield it offers for reward checking.

However, you should discuss with the bank the savings rewards in detail before plunging into that savings program. Most savings reward accounts require direct cash deposits or certain fixed number of transactions. For example, if a bank offers $100 as incentive if you move a savings account, it would insist on a high number of transactions. Still, getting $100 when you move your checking account is definitely a good offer. You would get lesser amount as monthly interest if you deposit $100,000 for one year under a certificate of deposit program.

The Exact Worth of Rewards and Incentives

Before you opt for rewards and incentives for your saving account, you should ask certain specific questions. You should first ensure that the savings reward account is suitable to your saving pattern and your present lifestyle. Otherwise, you might end up paying additional fees and thereby losing on your expected returns.

Remember that all cash incentives that banks offer for your savings account are taxable. When you add the tax amount with other additional fees that banks charge, such as fees for ATM transactions, the actual return could become unfavorable.

Finally, find out whether the saving rewards result in lesser yield. The standard benchmark yield on savings account is 0.8%. However, you might be able to obtain higher yields if you consider credit unions, local banks, and online banks also for savings reward account. You should also consider new websites like SaveUP that offer credit points for each one of saving in your online bank account or paying down of your debt. You could accumulate credit points and win prizes like cars, luxury trips, or jackpots. If you search enough and ask right questions, you would be able to get substantial incentives and rewards through your savings account.