IH Mississippi Valley Credit Union said a recent study revealed that one in four adults have no savings, and 40 percent have less than $500 tucked away for emergencies.
Now, the credit union has created Auto Savers, a new savings program.
“One of the most effective ways to build savings is to set aside money consistently over a period of time,” said Dennis Hall, president and chief executive officer of IH Mississippi Valley Credit Union.
Members can sign up for an Auto Savers account at ihmvcu.org/autosavers. After that, they add a designated amount to their monthly IH car loan payment. The credit union moves the extra amount into a high-rate savings account. As the loan balance decreases, the savings balance grows.
“Most people have the tendency to round up bills and loan payments. Auto Savers takes that same idea, but actually sets aside the extra,” Hall said. “By adding $20 a month to their loan payment, which is about the cost of ordering a pizza for delivery, they’ll have saved almost $250 by the end of the year.”