Consumers rarely do anything unless they feel they get something out of it. I keep wondering what savings motivating system banks could put in place?
Canadians are notorious for loving rewards systems, where they can accumulate points for later purchases, maybe something like that? A points system that would pay more monthly, the more money you had in your savings account?
I think I am on to something here, if banks paid people these points that they could use to purchase things, that might motivate people to save more money.
A Savings Motivating Refinement
What if this point system allowed you to swap points for money? Better still what if you didn’t accumulate points for having more savings, you accumulated money? Money that would be added to your account balance, and then the next month you might accumulate more money because of this added money?
This is possibly the greatest idea ever to motivate consumers to save money, isn’t it?
Where can I get this Interesting Reward System?
Go to a bank or trust company. Ask if you can please open a High Interest savings account, or better still go on-line and open one there. Here is a simple way, click here to open an EQ Bank Savings Plus Account.
We have talked about the power of compound interest before folks, it has been around longer than Pay Day Loans!
Yes, savings accounts have rules about taking money out too often, but if this is the reason you aren’t saving money, you have a problem. Follow the rules, get your 2% (for now) and start saving. With Interest rates rising the Savings Account will slowly make a comeback!
Yes, I am a sarcastic curmudgeon, I am poking fun at Canadians and our love of rewards systems (and our lack of savings).
There is a simple motivation scheme for banks to get us to save money!
It is called interest. Back in the 50’s/60’s banks had what was called a savings account. They didn’t charge you anything for letting them use you money by lending it out to other people/businesses. They actually shared the profits they made by paying you interest. Even at low savings levels like $25 you would get some interest at the end of the year. NOW, they charge you unless you keep a minimum balance.
The fed government did the same thing with CSB’s by paying such a low interest rate that no one wanted them any more. The fed (and prov and municipal) governments would rather borrow from the banks at higher interest rates than they were paying their citizens. Guess where the banks get the money to lend to the governments. Three chances! Why could the fed government not pay a similar interest rate on the CSB’s?