Entry for the 'Raise the Rate' contest sponsored by TIAA-CREF.

1. Spend money, Save money.
Effortlessly and Effectively.

2. Getting to 10% in two years.
Can it be done?
Image with permission from the Tycoon Report

3. These days, Americans habitually spend money when they
know they should be saving it.
There is a demand for a comprehensive system to help
every American save money proportionately to their
spending.
The “Optimal Savings” Option is a service that constantly
builds savings by consistently putting a percentage of a
person’s spending automatically into their savings
account.
So when you’re spending, you’re saving.

4. The “Optimal Savings” Option would be a voluntary service
provided through a person’s bank.
It would transfer a set amount of $0.05 to $0.25 from a
person’s checking account into their savings account for
every dollar they spend in all debit transactions made from
their checking account.
Below a balance of $50, the option would be put on hold.
The option would adjust the amount saved on transactions
that put the balance below the minimum.
Text and email notifications would inform a person when
their balance is at the $50 minimum. Online banking and
smart phone apps would track spending and savings.

5. The option would apply to transactions made through a
debit card. People could choose to have ATM
transactions apply or not.
Saving accounts would have a low startup and required
minimum balance of $50. To encourage a high savings
balance, savings interest rates would increase in
levels as the balance grew.
To discourage excessive withdrawals, a 24-hour period
would be required to withdraw funds over $100 and
there would be only one free withdrawal per month.
Extra withdrawals could be made with a $20 fee.

6. Computer software is technologically advanced enough
to design a program to successfully orchestrate The
“Optimal Savings” Option.
The savings accounts for this option have lower
minimums so more people can have the means to use it.
A minimum checking balance hold provides security for
people who regularly overdraft.
Savings account withdrawal restrictions and interest rate
increases encourage people to deposit and keep their
money in savings, but allow for access if the need arises.

7. $ Available
Spending
$ Saved
$0.05
$ Saved
$0.10
$ Saved
$0.15
$ Saved
$0.20
$ Saved
$0.25
500 25 50 75 100 125
1000 50 100 150 200 250
1500 75 150 225 300 375
2000 100 200 300 400 500
2500 125 250 375 500 625
3000 150 300 450 600 750
For a person to choose the rate of savings for them, they would look
at how much they spend on debit in one month, such as $500. Then
they would decide how much less they could afford to spend, such
as $50. This person would be use the $0.10 option. If another
month, they had $1000 to spend, they would save $100 of it. They
would always be saving 10% of their available debit spending.

8. Society in the United States gravitates toward what is
most convenient. The “Optimal Savings” option needs
little user input to work safely after it is put in place.
It’s rate options give it the ability to be useful to all
income levels and would bring saving money into reality
for more people.
Many Americans aren’t savvy with money. This service
doesn’t require a person to proactively save or even
think about saving at all. A person could still spend until
their account hits zero and save without even noticing.

9. Transactions Savings Debits Credits Balance
DEBIT (1.00) (10.75) 523.80
DEBIT (1.50) (15.66) 535.55
CHECK (390.00) 552.71
DEBIT (17.50) (174.84) 942.71
DEPOSIT 1100.00 1135.05
DEBIT (0.00) (3.52) 35.05
ATM (3.90) (50.00) 38.57
ATM (10.00) (100.00) 92.47
DEBIT (3.80) (37.98) 202.47
TOTAL (37.70) (782.75) 1100.00
This example of an online checking statement demonstrates a person
who chose $0.10 and applied the option to ATM transactions.

10. Transactions Savings Debits Credits Balance
DEBIT (1.00) (10.75) 523.80
DEBIT (1.50) (15.66) 535.55
CHECK (390.00) 552.71
DEBIT (17.50) (174.84) 942.71
DEPOSIT 1100.00 1135.05
DEBIT (0.00) (3.52) 35.05
ATM (3.90) (50.00) 38.57
ATM (10.00) (100.00) 92.47
DEBIT (3.80) (37.98) 202.47
TOTAL (37.70) (782.75) 1100.00
This example of an online checking statement demonstrates a person
who chose $0.10 and applied the option to ATM transactions.
The option adjusts on the
transaction that puts the
balance below the $50
minimum and is then on hold.

11. Americans want to have a decent savings, but they also
want and need to spend. The “Optimal Savings” Option
is appealing because it allows people to combine the
two.
People would take advantage of this option because it
works with their specific needs to build their most
optimal savings without a huge lifestyle change.
It works with manageable percentages, so even low-
income families, individuals, and college students would
be able to save effectively on a limited budget.

12. It’s true that banks have already begun to offer automated
savings programs. Some add just the cents, some move a
dollar per debit transaction, and others move a set amount
you decide on a schedule.
This option is different because it’s responsive.
Basing savings on percentages is optimal because it’s
precise. By incorporating a system like The “Optimal
Savings” Option into everyday banking, impactful saving
can become a prevalent part of American society.
Implementing a wait-period for large withdrawals and
penalizing excessive withdrawals prevents people from
becoming their own worst enemy. Waits and penalties
mean having to think about purchases that could derail
financial goals.

13. 0
50
100
150
200
250
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Trillions Saved Trillions Spent
ApplicableIncomeinTrillions
If 18 million Americans had $900 to spend in debit and/or ATM
transactions in one month and they all used the option to save
$0.10 for every dollar spent, each would have put $90 in savings
and together, they would have put $1.62 trillion in savings after just
30 days. (At the same rate, that’s $19.44 trillion put in savings after
one year!)

14. It can be done!
Taxes are calculated with percentages based on a person’s
income and spending. Bank savings programs can work
this way, too. By offering flexible options, anyone can
consistently save money.
The “Optimal Savings” Option provides a seamlessly
beneficial service to everyone with a checking account and
debit card that helps them to build a secure financial future.
“Unity is the secret of social progress, and service to society is
the means to promote it. ”
Sri Sathya Sai Baba

15. All images used
in this presentation are with
licensed or written
permission and are royalty-
free.