In a bid to draw the country's savings gap closer, UK banking group Lloyds TSB is to introduce its Save the Change scheme, which comes with a bank card that automatically rounds up the consumer's total purchase price and places the remaining amount into a savings account.
The scheme is the first of its kind in the UK and is being marketed as a new piggy bank for the 21st century. It is designed to be a simpler and easier form of saving for consumers. Currently, one in four UK consumers does not have any form of savings.
Every debit transaction will result in additional savings for the customer. Research undertaken by the bank reveals that nearly a third of people are using their debit card more often than they were 12 months ago and 36% are using their debit card for smaller purchases.
We want to make it as easy as possible for people to get into the savings habit…at the end of the year customers will have a nice nest egg to build on for the future, stated Terri Dial, Lloyds TSB group executive director.
The scheme is scheduled to start in February 2006 and can be linked to most of Lloyds TSB savings accounts. Parents also have the option to nominate a child’s savings account.