Review of Wachovia’s Way2Save Program
Feb 4th, 2008 | By moneyking | Category: Money
Last night I saw an advertisement on the television announcing the new Way2Save program from Wachovia Bank. It sounds like an interesting program which basically forces you to save money even as your spending money. It works like this: For every check card or online bill pay transaction you perform from a Wachovia Free checking account, $1 will be transferred into a high interest Way2Save savings account. This account earns 5% for the first year, and at the end of the first year you will also get a 5% bonus, up to a maximum of $300.
The Way2Save program sounded great and prompted me to look into it further so I can start getting a 5% return. I thought that this would be a perfect replacement for my HSBC account whose rates are falling (they’re at 3.80% now). As usual, there are some limitations of the Way2Save program which prevented me from signing up. The biggest limitation is that the ONLY ways you can deposit money into the Way2Save savings account are through: the $1 transferred in from each purchase, and by setting up an automated recurring monthly transfer of up to $100 per month.
That was the show stopper. The maximum that I could save in the account over the year, without spending money was $1,200! Sure, I’d also get a few extra bucks earning interest in there through my daily transactions such as buying gas, groceries, etc. However, the hassle to switch all my banking over to Wachovia just wasn’t worth it. Plus, the fine print stipulates that the 5% interest rate is only valid for the first year. In years 2 and 3 it becomes 2%, and at the start of Year 4 the APY is the same as their Premium Savings accounts.
Wachovia, if you’re reading this: I think the program would be better if it allowed your clients to open the account with up a $100,000 transfer, and if you removed the $100 monthly transfer limit. This would allow you to attract a savvy Money King who is truly interested in saving their money. I don’t want to be forced to spend in order to get a dollar per purchase put into the account. Instead, this should be more of a passive “bonus”. Any Money King already knows to “Pay Herself First”. On the day we’re paid, we’re online transferring money from checking to savings in order to earn some extra interest.
To recap, here is a summary of the program:
- Open a Wachovia Checking a Way2Save account and get $1 transferred into your savings account for every check card purchase and electronic payment.
- You can only add funds to your Way2Save savings account through a maximum $100 month recurring transfer.
- You earn a 5% APY the first year. Years 2 and 3 you earn 2%. Years 4 and beyond you get the same APY as Wachovia’s Premium Savings accounts.
- At the end of your first year, you get a 5% bonus paid on your savings balance, up to $300. At the end of years 2 and 3, you get a 2% bonus, up to $300.
- You can withdraw your funds from the savings at any time without penalty.
Overall Grade: C
The Way2Save program will not be attracting this Money King.
The Money Kings
Keywords: Wachovia, Way2Save, savings, checking, bonus, check card
There seems to be a problem at Wachovia processing those $100 -a-month transfer requests. Customer service rep told me that “it might be a computer problem”
Conspiracy theories aside, but is it possible that Wachovia realized that it’s impossible to pay 5% and then 5% bonus at the end of the year??
I would doubt that there are any conspiracy theories here. Wachovia is a large bank who I believe would stand behind their advertising. Perhaps they just jumped the gun and announced the program before all the software to manage it was in place including the $100 per month transfers. I’m sure they’ll work out any kinks and deliver what they promised. Did you in fact sign up for the Way2Save program? If so, what were your thoughts and comments on it so far outside of the $100 a month transfer issue?
Way2save promotion is bogus. I believed them, opened Way2Save account and did multiple payments and online purchases to move a good amount of money to way2Save account. But once they found that I have good balance in my way2save account (for which they need to give the interest rates and bonus mentioned above), they just closed my way2save account. The reason they give is that I made multiple payments. Nowhere in their terms and conditions they have mentioned that we should not make multiple payments.
It seems quite obvious that they closed my account is only to avoid giving the 16% interest and the 5% bonus on first year for the Way2Save account. This is an unfair act of not honoring the promotional offers which they have already advised to lure the customers. I have never seen any bank which has been unfair like this. They behaved so cheap.
Hence please be aware with Wachovia before believing wachovia’s promotional offers as they will deceive the customer at any time like this.
Regards
Poorna
Poorna did you make multiple payments from your Way2Save account or your checking account. If it was from you Way2Save it does state that they will close your account. Below is copied from their website.
Can I take money out of my Way2Save account without a penalty?
Yes, there is no penalty to withdraw funds from the Way2Save account. You have full access to the funds. The Way2Save account is subject to Regulation D. Federal regulations limit third-party transactions or pre-authorized transfers (including overdraft transfers) or transfers made by personal computer (including Online Banking) or telephone from the customer’s account to six per month, no more than three of which may be by draft or debit card. If this limitation is exceeded on a regular basis, Wachovia is required to close the customer’s Way2Save account.
Sure this account may not be for everyone like the Money Kings of the world but I think it is a great savings account for us little guys. It forces you to save without having to think about it. Every little bit helps. With the amount of transactions my husband and I make with our cards and paying all of our bills online and the $100 per month we will save enough to pay for my sons private school by the time he starts.
Hi Brandy
I made all payments from my checking account.
Regards
Poorna
Don’t forget, after 1 year, they charge $5/month on your account. You say, “I’ll close it!” Well, they gotcha by the balls now, cuz in order to get the extra 5% at the end, “your checking account and Way2Save account must be opened, linked, and in good standing at the time the bonus is credited.”
It’s “calculated on the 12 month anniversay of your enrollment in the program” so who knows when it will be credited. If it is credited a day after your anniversary, you’re already charged the monthly fee.
The monthly fee can be avoided with “qualified transactions”. What does that mean? Pin or signature based debit card transaction or online bill pay? If that’s the case maybe it’s not an issue… Anyone?
Gary