National Savings Alliance, Inc.

This company offers a “spend-to-save,” membership associate program that is funded by cash back dividends from participating merchants. Enrolled merchants are able to offer their customers a program that automatically deposits cash incentives or rebate dollars directly into the customer’s savings accounts by making everyday purchases. For Financial Institutions, it is an automatic deposit program, depositing dollars directly into the customer’s savings or investment accounts.

There are no charges to enroll in the program. The program requires all participants to provide personal financial information, and access to any existing bank accounts. If the member does not currently have an active savings account, the company will open a savings account on behalf of the Associate as long as they have a valid US checking account. A link is provided to Emigrant Bank to create an online account. When making an online purchase, you must register your purchase on the NSAC web site in order to receive the proper credit and authorize NSAC to deposit your cash back savings into your savings account.

The site also promotes other Emigrant Bank services, such as a CD deposit account and a platinum credit card, advertising they offer the highest (1.40%) cash back redemption amount. Conditions apply. In order to receive the advertised credit card cash back rate, the primary cardholder on the EmigrantDirect Credit Card Account must maintain an American Dream Savings Account that has had an average daily balance of at least $10,000 for the preceding six months. Other restrictions may also apply.

While saving and investing money is always a valid thing to do. A spend-to-save program may be more of an incentive to run up higher credit-card debt. Keep in mind that this company earns fees from retailers every time you use their buying program. If a program promises a 1 percent rebate, you would have to spend $1,000 to get $10 back or to get $10 deposited in a savings account. Most online buyers also use credit cards to make purchases. Reward credit cards are good if you pay your bills in full every month. This way you don’t incur finance charges. Say a card promises 1 percent back and it’s going into an account that can earn 3.5 percent but the card carries a 13 percent interest charge on unpaid balances. If you spend $100, the rebate of $1 would earn 3.5 percent cents in interest every year, but the finance cost for carrying that $100 would be $13.