Updated on December 31, 2007.

FORGET ABOUT CHALKING up reward points, air miles and cash-back checks. How about some cold hard cash instead? Banks and credit-card companies are offering all sorts of products from checking and money-market accounts to credit cards that can help you improve your bottom line every time you deposit cash in an account or buy something using your credit or debit card.

Considering that Americans save less than a penny out of every dollar they earn (just $0.003, in fact), according to the Bureau of Economic Analysis, that should come as welcome news. Yet, while savings-rewards accounts may help you sock away a little extra cash, most are little more than the bank-sanctioned equivalent of putting loose change in a jar, says Linda Sherry, spokeswoman for advocate Consumer Action.

"It doesn't really add up to serious savings," she says. "People who put their mind to it and save 10% of their income over the course of a year will get further. Ultimately, these are all gimmicks to get you in the door and get you an account."

True enough, but if it gets the ball rolling toward a consumer opening a savings account or even thinking about socking some of their own money away for college or retirement on top of what the bank or credit card is offering, it may not be such a bad idea. After all, a penny saved is a penny earned. Here's what's being offered:

Rewards for Spending

Spend $50 at Barnes & Noble.com using the Citi UPromise card, and generate $1.50 toward your child's college education. Or fork over $300 at the grocery store using the Fidelity Investment Rewards card for an extra $4.50 in your Fidelity Roth IRA. Savings credit cards offer cash back on every purchase, with the proceeds direct-deposited into high-yield savings accounts, 529 college savings plans, brokerage accounts or other investment vehicles.

If using a credit card to improve your bottom line sounds counterintuitive, make no mistake for many consumers, it is, warns Ed Mierzwinski, consumer program director for the U.S. Public Interest Research Group, a consumer advocate. "Rewards are only a good thing if you don't carry a credit-card balance," he says. "The 1% you're saving isn't going to offset an 18%, 19% APR." Or even one that's 8%.

For those who pay off their balance in full each month, however, using the right card can help boost your savings. Using the American Express One card, for example, generates 1% cash back, which goes into a high-yield account earning 5%. Spend $1,000 a month, and at the end of the year you'll have a windfall of roughly $175.

The 1% cash-back rate (plus bonuses) that savings credit cards offer is comparable to that of many cash-back cards. But instead of receiving rebate checks from your card issuer, your savings are direct-deposited a forced savings aspect that ensures you won't be tempted to blow your windfall on an impulse purchase. Bonus: Such cards are a much better deal than swapping points or miles for cash, which rarely works out in the consumers' favor. To see the math, click here

Here's what major issuers are offering:

SAMPLE SAVINGS
Credit Card	APR	Details	Annual Savings **
American Express One	13.49% variable	Every purchase you make generates 1% cash back, with the proceeds directed to a high-yield savings account earning 5%. Get a $50 bonus after your first purchase. Annual fee of $35 waived for the first year. No annual contribution limit.	$175.36
Citi UPromise	13.24% variable	Earn at least 1% cash back on every purchase, with proceeds deposited directly to a 529 college savings plan. Get 10% back on more than 7,000 grocery and drug store items, 2% back on Exxon Mobil gas purchases, and 1% on all other purchases. No annual contribution limit for grocery or gas rebates; $300 annual cap for all others.	$166
Fidelity Investments Rewards	14.99% variable	Earn 1.5% cash back on every purchase, with proceeds deposited directly into the Fidelity account of your choice, whether an individual brokerage account, trust, 529 college savings plan or IRA. Annual contribution limit of $1,500.	$180
Future Trust MasterCard	13.24% variable	Earn at least 1% cash back on every purchase, with proceeds deposited directly into a 529 college savings plan. Earn an additional 1% back on your first $5,000 in purchases, plus cash-back bonuses of up to 20% when you buy from any of more than 5,000 partner retailers. No annual contribution limit.	$170

* Data from individual financial institutions. ** Figures include interest, when calculable. Based on charges of $1,000 per month, $350 on groceries, $150 on gas and $500 on other items all while avoiding partner retailers that offer bonuses.

Rewards for Saving

When your bank offers to match all or part of your savings, there's absolutely nothing to lose, says Scott Bilker, founder of

DebtSmart.com

. True, these programs offer stingy interest rates, but there's no rule against claiming the match and then moving the cash into an account with a more attractive

yield

.

Case in point: Bank of America's Keep the Change program, which rounds up every debit card purchase you make to the nearest dollar, diverting the difference from your checking account into one of its two savings account options. The bank then matches your savings 100% for the first three months, and makes an annual match of 5% thereafter. You'll earn just 0.20% or 0.50% on the measly balance, depending on the savings account. But frequent debit-card users may find the free match makes the low rate bearable.

While national programs are few and far between, smaller bank chains, independents and credit unions tend to be more generous. Wisconsin-based Guaranty Bank, for example, contributes an annual match of up to $100 to your savings account, based on your average monthly checking-to-savings transfers. Bank of Utah offers a $300 match on its Bridal Savings Account, which helps young couples save for their first home.

Here's what major banks are offering:

SAMPLE SAVINGS
Program	APY	Details	Annual Savings
Bank of America Balance Rewards Money Market	0.50%-4.05%	Earn an annual cash bonus based on your lowest average monthly balance; up to $200 for balances of $40,000.	Keep a balance of at least $3,000 and earn $15.03 in interest, plus a cash bonus of $15.
Bank of America Keep the Change Checking Rewards	0.20%-4.05%	Every debit-card purchase you make is rounded up to the nearest dollar; and the difference transferred from your checking account to a savings account. Bank of America matches 100% of your savings for three months. Thereafter, it matches 5% of your annual savings, up to $250.	Use your card 40 times each month, with average change of 50 cents, and save $309.34, including 34 cents in interest and $69 in matching contributions.
ING Direct Orange Savings Account	4.10%	Open an online account and deposit at least $250 and 90 days later, you'll receive a $25 Savings Booster (ongoing offer).	Open an online account with $250, and have $285.85 in a year.
U.S. Bank Cash Bonus Checking Rewards	0%-0.4%	Earn up to 25% cash back for non-PIN purchases at partner retailers. Rewards are redeemed in $5 increments, and are deposited directly into your checking or savings account.	Use your card for $300 in purchases each month, with an average cash-back rate of 10%, and have $30 in a year.

* Data from individual financial institutions.