Wachovia has a new savings program called Way2Save with some interesting qualities:
- 5.00% Annual Percentage Yield
- 5.00% first year bonus (MAX of $300 per year), 2% bonus in 2nd and 3rd year.
Now, to open a Way2Save savings account, you also have to open a free checking account with Wachovia.
To encourage savings, Wachovia will transfer $1 from your checking account to the Way2Save account every time you use your debit card or use the online bill pay (weird feature if you ask me).
Anyway, to get a max bonus of $300/yr, you’ll need $6000 in the savings account.
With 5% APY, the interest paid will be $300, plus the bonus, you’ll get $600 for the 1st year. That is a 10% interest for the 1st year!
Since the 5% rate is not fixed, let’s say it drops to 4%.
Even then you’ll have $240 interest plus the $300 at the end of 1st year which is still a very respectable 9% interest on a $6000 balance!