ASB launches 'rounding up' savings

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One of New Zealand's biggest banks is encouraging Kiwis to turn their small change into big bucks via a new savings programme that rounds up customer spending on eftpos and visa debit transactions.

ASB says it hopes to make the challenge of saving easier for customers with the introduction today of Save the Change, the modern day equivalent of putting loose coins in a money jar.

This comes as research from Rabo Direct last month showed almost half of New Zealanders are saving nothing at all.

In a New Zealand first, ASB chief executive of customers, markets and products Catherine McGrath said customers can choose to round up their eftpos and visa debit card transactions to the nearest multiple of $1, $2, $5 or $10, depending on their savings goal.

For instance if a customer opted to round up to the nearest dollar, a $2.30c purchase, would be rounded up to $3, with 70c sent to a nominated savings account overnight.

"It's such a natural thing, you are taught as a child to save your pennies - this is a grown-up version of that."

The great upside was that it did not cost customers anything and it helped people to 'accidentally save', McGrath said.

ASB estimates the average customer making three transactions a day could save between $328 and $4577 per year based on the rounding option they chose.

"If you are rounding your transactions up to $10, you could be saving $4500 per year - that's worth getting excited about," McGrath said.

Customers can see, based on their transaction history and when they register, how much they are likely to save by opting into the programme.

The programme allows customers to change their savings options at any time, to reflect their savings goal, McGrath said.

The concept of rounding up customer spending on debit cards is not new - it already operates successfully at Lloyds TSB in the UK and in banks in America - but it is the first time it has been tried here, McGrath said.

McGrath said savings can be split between up to ten ASB savings accounts and customers can nominate another person's ASB savings account to direct all or a portion of their savings to.

"It does not matter whether you are 18 and trying to learn to save or 60 and wanting to put something aside for the children. It works irrespective of age," she said.