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(KSL News) -- Credit card offers are popping up, promising to help consumers save money. Is it possible to actually save money by spending it?
This is how it works. For the debit cards, they will round up your purchases to the next dollar, take that difference and move it from your checking account to your savings account.
For credit cards, the issuer will deposit between one and two percent of what you charge into a savings account.
So what could go wrong?
Karen Gross, New York Law School Professor: "Look at the interest rate that your money would be getting in this savings account. If it's getting less than one percent and it's on a balance, you're losing money or not making money."
So before you sign up for one of these "spend to save" programs, read the fine print carefully. Ask about minimum balance requirement. Watch out for annual fees, which could equal or negate any savings you get.
And watch your revolving balances which could cost you more in interest penalties than any interest bearing savings account will make for you.
