ASB introduces new way to increase savings by putting aside the amounts left over when 'rounding up' EFTPOS purchases

ASB introduces new way to increase savings by putting aside the amounts left over when 'rounding up' EFTPOS purchases

In another sign that banks are focusing more of their marketing and technology activity on raising more funds rather than lending out more funds, ASB has announced a new way to save known as 'Save the Change'.

Customers will be able to specify how much they want to 'round up' their EFTPOS purchases and pocket the difference as savings, ASB said. It describes it as the "the modern day equivalent of putting loose coins in the money jar."

ASB recently announced plans to take deposits of up to NZ$10 million per customer into its term deposit accounts and in 2009 ASB set up a Jobs fund that raised NZ$1 billion in record time, but of which almost 90% has not been lent out.

"Save the Change enables customers to choose to round up their EFTPOS and Visa Debit card transactions to the nearest multiple of NZ$1, NZ$2, NZ$5 or NZ$10 with the rounded up amount being transferred to their nominated ASB savings account overnight," ASB said.

Customers can also round up their other electronic transactions, such as automatic payments, bill payments and direct debits, it said, adding savings can be split between up to ten ASB savings accounts. Customers can also nominate another person’s ASB savings account to direct all or a portion of their savings to.

The average customer doing three transactions per day could save between approximately NZ$328 and NZ$4,577 per year depending on the rounding option they choose, ASB said.

It added a 'Save the Change' transfer would only occur if there were sufficient funds in the customer’s account at the end of the day, which meant customers would not go into unarranged overdraft.

“We recognise that some people find it difficult to save regularly. Save the Change has been designed so the savings increments are small enough not to amount to significant deductions from a customer’s transaction account,” said ASB's Chief Executive for Customers, Markets and Products, Catherine McGrath.

ASB customers can sign up to Save the Change either online under the ‘My Money’ toolbox in its FastNet Classic online bank, in ASB branches, or by calling ASB's contact centre.

As part of the registration process on FastNet Classic, ASB customers will be able to work out how much they would have saved based on their transactions over the last year.