ASB's 'rounding up' savers net $75k

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More than 9200 New Zealanders have saved $75,000 in the two weeks since ASB launched a programme directed at helping customers save.

The bank is encouraging Kiwis to turn their small change into big bucks via a savings programme that rounds up customer spending on eftpos and visa debit transactions.

Customers can choose to round up their eftpos and visa debit card transaction to the nearest multiple of $1, $2, $5 or $10, depending on their savings goal, via the programme 'Save the Change'.

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.

ASB chief executive of customers, markets and products Catherine McGrath said customers were using the money to fund Christmas presents, to save for weddings and as 'treat' money.

A good proportion of customers were rounding their purchases to the nearest multiple of $1 first, probably so they could see the impact it had on their spending and saving, she said.

The concept of rounding up customer spending on debit cards is not new - it already operates in banks in the UK and America, but it is the first time it has been tried in New Zealand.

Despite the apparent success of the programme, none of the other big banks spoken to said they had plans to launch a such a concept.

ANZ and National Bank spokesperson Lyn Holland said both banks had considered the idea in the past, but said she believed customers got the best result from setting up an automatic payment timed to coincide with their salary.

Successful saving was all about getting into the habit of saving regularly, she said.

Kiwibank said it had no plans to adopt a rounding up programme, but would be launching its own savings programme next week.

Westpac said it had launched a major savings campaign earlier in the year, but there had been no demand for a rounding up programme from customers.

- NZ HERALD ONLINE