What Are Round-Up Savings?

How Do Round-Up Savings Accounts Work?

As the name suggests, round-up savings works by rounding every debit card purchase up to the next whole dollar and sending the extra pennies, dimes and nickels to savings. Many banks, credit unions and fintech apps provide this tool.

Rounding up is a great way to save without really feeling a pinch. You're probably not going to miss that extra 80 cents from an Amazon purchase on its own, for example. Consider how many payments you make in a month, though, and those pennies can add up to a significant amount of money.

U.S. consumers average 31 card payments per month, according to a 2024 Federal Reserve Bank of Atlanta study. That's a lot of opportunity to add a few cents to your savings. If those transactions average, say, 50 cents per transaction, that could add up to more than $186 per year, or $15.50 per month.

If you direct the funds to a high-yield savings account, the stronger yield and compounding interest can help it grow even more. Alternatively, some banks let you send the change to a verified charity or investment account instead of your own savings.

Pros and Cons of Round-Up Savings

Round-up savings can be a painless way to build a savings habit, but fees and budgeting pitfalls are worth considering first.

Learn more: Places to Save Your Money Based on Your Goals

Is Round-Up Savings Worth It?

Round-up savings can be worth it if you don't have a savings fund and want to jump-start one. It can help you build a savings habit by starting small without changing how you spend.

Before you start, make sure you have enough room in your checking account to handle several small transfers. While micro savings deposits can add up over time, they likely won't be enough to fully build your emergency savings or cover a big purchase using this strategy alone.

Still, round-ups are a useful tool to set aside a tidy sum with little effort. Using the above example of 31 card payments a month with an average round-up of 50 cents could send $186 a year into a high-yield savings account. If it earns 4% annual percentage yield (APY) and you keep the monthly interest in the account, after 10 years, you'd have around $2,274 without really thinking about it.

If you're already saving regularly through direct deposits or recurring bank transfers, round-up savings can maximize your earnings a little more. The extra amount isn't life-changing, but it can be a nice addition.

How to Enroll in Round-Up Savings

You can set up round-up savings through your bank or through a fintech app. Both move your spare change somewhere automatically, but the setup, fees and destination can vary.

Through Your Bank

You'll need both a savings account and a checking account to take advantage of round-up savings through your bank. Log in to your bank's website or app and look under savings tools, account services, account options or settings for a round-up option. Once you find it, select it and pick your destination savings account. Online banks typically activate round-ups immediately through the app. Other traditional banks and credit unions may need a phone call, branch visit or a few business days to process.

If you don't see the feature, your bank may not offer it, but it's worth a phone call to customer service to confirm. If they don't, you'll need to switch to a bank that does or use an app.

Through Fintech Apps

Download the savings app of your choice, such as Acorns or Qapital, and connect all of your debit or credit cards. You'll pick a destination for your round-ups, typically a savings or investment account, though some apps, like Round Up App, allow you to donate to a nonprofit organization. From there, round-ups typically start happening automatically on purchases made with the linked card.

The Bottom Line

Round-up savings are a simple and effective way to start building a savings habit or add a little extra to your existing strategy. You don't have to alter your spending, and the multiple mini-deposits each month can lead to significant savings over time.

For example, the Experian Smart Money^™ Digital Savings Account's Round Up^¥ feature can help you build savings by automatically rounding up eligible Experian Smart Money^™ Debit Card purchases to the nearest dollar and transferring the extra change into your Experian Smart Money Digital Savings Account. You can get an Experian Smart Money Savings Account through an eligible Experian membership, which also gives you access to your FICO^® Score^Θ, Experian credit report, credit monitoring and more. See terms at experian.com/legal.