SunTrust Bank has debuted a new savings account, called e-Savings, that aims to help customers reach their financial goals. Customers can designate each e-Savings account for a certain goal so they can better manage their savings.
A survey commissioned by SunTrust found that 30 percent of people who currently are saving or plan to save money for memorable life experience will use a separate account to help them compartmentalize money and save.
“Getting organized is the first step in the journey toward obtaining financial control,” said Beverly Ladley, SunTrust client segments and solutions executive, in a press statement. “SunTrust e-Savings is a great way to save for short- or longer-term goals, whether it’s a weekend getaway or a down payment on a new car.”
The e-Savings account is only available to those who already have a SunTrust checking account. Multiple e-Savings accounts can be opened and each one can be assigned a name so that customers can keep track of each account.
The account has no monthly fee and the account balance earns 0.01% APY (as of May 5, 2014).
While the SunTrust e-Savings account has good intentions, it does face some big competition.
SmartyPig also offers free goal-oriented accounts to simplify the chore of saving. Currently, SmartyPig accounts carry a 1.00% APY. One possible disadvantage to the accounts is that customers cannot withdraw partial funds from their accounts.
Online banks such as Capital One 360 and Ally Bank have free online savings accounts that can be given nicknames by accountholders. Additionally, customers can open multiple savings accounts, each for a different purpose. Currently, the Capital One 360 and Ally Bank savings account offers 0.85% APY and 0.87% APY, respectively.
SunTrust customers would have to decide whether or not they like having all their money at one place, or go with other banks that offer a higher interest rate.
Although most other big banks don’t yet have an account like SunTrust’s e-Savings account, customers of other megabanks can use personal financial management tools like Mint, which allow them to label each account for a savings goal.