Spending to save may seem contradictory, but that’s what some charge card companies are encouraging. This could prove a valuable strategy for the nearly 20 million Latinos who don’t have bank accounts, but watch for hidden risks.
Bank of America’s Keep the Change program, for example, rounds up every Visa debit card purchase to the nearest dollar and transfers the difference from your checking to savings account. For every purchase made with its Savings Accelerator card, American Express contributes 1 percent into a savings account.
Beware, though, of costs that offset any savings: transaction and account charges, annual fees, and interest and finance penalties if you don’t pay off your monthly bill.
