The document proposes an automatic savings plan called "Round Down to Save Up" to help increase the low US personal savings rate. It would work by rounding down consumer checking deposits to the nearest multiple of $10 or $20, with the rounded off amounts automatically deposited into a savings account. Banks of all sizes would be encouraged to participate and be creative in promoting the plan to attract new customers. The goal is for this plan to make saving fun and popularize the idea of saving spare change and loose dollars to help "Raise the Rate" of personal savings in the US.

1. By Sean Doherty
a Raise the Rate Idea

2. The United States
savings rate is at a
dismal level, despite
an abundance of
opportunities and
tools
with which to save.
0%
2%
4%
6%
8%
United States Personal
Savings Rate
United
States
Savings
Rate
BACKGROUND
Data gathered from Congressional Research Service:: Savings in the United States:
Calculations and Comparisons, by Craig K. Elwell, September 14, 2010.
http://www.fas.org/sgp/crs/misc/RS21480.pdf

3. To develop a plan to increase
savings in the United States and to
help Raise the Rate of personal
savings to 10% over the next two
years.
PURPOSE:

4. Problem
U.S. savings
rate is at a
dismal level
Solution
An automatic
savings program
will help
consumers save
and thus Raise
the Rate
PROBLEM / SOLUTION

5. Problem
Too many
purchases are
made with credit
cards and other
forms of
borrowing
Solution
Savings accounts
can help
consumers plan
for large
purchases, rather
than rely on credit
PROBLEM / SOLUTION

6. A TREMENDOUS OPPORTUNITY
Everyone knows that
money makes the world
go round.
But conversations
about money generally
only refer to lump sum
amounts and large
deposits. Few people
bother to talk about the
single dollar bills and
spare change.

7. A TREMENDOUS OPPORTUNITY
A secondary flow of money lies underneath the large
deposits, and goes by largely unnoticed.
Charities have partnered with retailers to “round up”
purchases and have successfully raised large amounts of donated
money from the “under economy” of those rounded purchases.
This ‘under economy’ of ‘loose change’ is not being
served and provides a tremendous opportunity! In today’s tight
economy, families are looking to stretch every dollar now,
perhaps more than ever! But, until now, banks have ignored
money that is right under their noses!
An innovative Savings Plan will find
new ways to look at money and
banking.

8. HOW CAN BANKS CAPTURE THIS
TREMENDOUS OPPORTUNITY…
…WHILE SERVING THE BEST
INTERESTS OF THEIR CLIENTS?
(AND WILL THE PLAN RAISE THE RATE?)

9. PROPOSAL
• Develop an automatic savings plan
• Involve the major banks, credit unions, and community
banks
• Allow banks to be creative
• Popularize the idea within U.S. culture
• Have fun!

10. Round Down to Save Up: Check deposits are
rarely in round, whole number amounts ($200 or
$1,000, etc.). Rather, deposits usually end up with
decimals and ‘loose dollars’ ($214.76 or
$1,483.01, etc)
A healthy savings program can be developed by
using those ‘loose dollars’ and the ‘spare change.’
DEVELOP AN AUTOMATIC SAVINGS PLAN
An effective Savings Plan will involve
automatic deposits and will find
sources of income that are relatively
untapped.

11. Banking customers will
be presented with the
option to enroll in an
automatic savings
account program to
maximize the power of
their ‘loose dollars.’
Option 10: checking deposits are
rounded down to the nearest multiple of
ten with the rounded amount being
automatically placed into the client’s
saving account.
$256.43 becomes:
$250.00 in checking
$6.43 in savings
$2578.99 becomes:
$2570.00 in checking
$8.99 in savings
ROUND DOWN TO SAVE UP
A feasible Savings Plan will take place
automatically without the hassle of
continuous action by the client.

12. Consumers who are committed to strong savings
goals will be able to round down in larger amounts,
thereby increasing the amount contributed to
savings.
Option 20: round down to multiples of 20
$278 becomes $260 in checking, $18 in savings
Option 50: round down to multiples of 50
$1,490 becomes $1,450 in checking, $40 in savings
GREATER SAVING POWER

13. Encourage participation from banks of all
shapes and sizes by designating a contest
winner for each category:
INVOLVE BANKS
Large-size banks
Mid-size banks
Small-size banks
Credit Unions
Community banks

14. ALLOW BANKS TO BE CREATIVE
Free banks to be creative and innovative. How? By
developing an initiative with goals, but by giving banks only
minor direction on how to fulfill it. Each bank will, in
competition, develop their own best practice ways to out
compete the others.
When banks can freely compete- in the interest of
serving their consumers by increasing savings deposits-
then they will develop innovative and creative methods to
attract new customers and encourage use of their savings
accounts.

15. WHAT WILL CREATIVITY IN BANKING MEAN?
Rather than just following a plan to increase
savings, banks that are competing for top
deposits might:
Develop attractive incentives for new savings accounts
Implement visualization tools to help clients visualize
their savings goals becoming a reality.
Coach clients to save money regularly, with each paycheck.
Develop new mobile apps!

16. Make it fun and interesting
- the name says it all: Round Down to Save Up!
- A great complement to the Raise the Rate theme
Make it viral:
-Facebook and social media
-Competition among banks means new programs
and incentives to save.
-New programs and incentives will fuel workplace
discussions and friendly competition among family and
friends
POPULARIZE THE IDEA

17. Imagine bankers asking their clients:
“How do you manage your ‘loose
change?’”
WHAT WILL THIS LOOK LIKE?
Imagine friends saying to one another:
“What do you do with your ‘loose
change?’”
And most important, picture clients saying:
“This savings plan has really paid off.
I’m so glad I began to ‘Round Down to Save
Up!’”

18. Thank you TIAA-CREF for the sponsorship of
this contest and for the work done to help Raise
the Rate!