Is It Possible to Split Direct Deposits Into Two Accounts?

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Employees paid through direct deposit can split their paychecks into two or even more accounts if their employers allow it, which many do.

How to Split Your Direct Deposit 

If your employer already pays through direct deposit, it’s likely that the company supports splitting those deposits into multiple accounts. Check with your HR or payroll department to find out if your workplace allows you to split your direct deposit.

If so, they’ll guide you through the paperwork, which you’ll use to submit the account and routing numbers for the destination accounts and authorize the split.

You don’t need to inform your bank, but you will have to determine how to split the funds in one of two ways.

• As a percentage: Direct some portion of your paycheck to the first account and the remainder to the second, e.g., 85% to checking and 15% to savings. 
• As a dollar amount: Choose a sum of cash for the first account and another for the second, e.g., $500 to savings and the remainder to checking.

What Are the Benefits of Splitting Your Direct Deposit? 

Nacha, the governing system for electronic money transfers, strongly encourages employees to split their direct deposits, primarily to promote saving.

Its research shows that those who do save $90 more per month than workers who use other methods and strategies to save money. 

However, although 82% of workers are paid through direct deposit, barely one in four — 24% — take advantage of deposit splitting despite it being:

• The most direct way to pay yourself first
• Reliable and secure
• Easy to fine-tune and control
• Simple to change if needed
• An effective way to achieve both short- and long-term financial goals
• Free 

Is There Anyone Who Shouldn’t Split Their Direct Deposit? 

There aren’t many scenarios where harm can come from splitting your deposits.

Low earners or those with many scheduled payments or outstanding checks could run the risk of over drafting if they leave insufficient funds in their primary checking accounts.

How Much Should You Put in Another Account? 

One of the benefits of splitting direct deposits is that it enables workers to customize the distributions to meet their specific needs, goals and lifestyles.

According to CNBC, most experts recommend saving one dollar in five from every paycheck. That would split your deposit with 80% going into checking and 20% into savings.

Another common goal is to save six months’ worth of expenses in a dedicated emergency fund, which might alter the formula, depending on your living costs and current savings. Others might split their deposits to focus on things like:  

• Saving for a down payment on a home
• Investing
• Long-term wealth-building
• Funding a 529 account for college expenses

The right amount or percentage will vary by employee, but Nacha points out that a worker paid weekly who diverts just $10 into savings every month will end the year with $520 in the bank.

The Bottom Line

Splitting your direct deposit can be a helpful tool that encourages saving, helps you achieve your goals and offers greater control over your finances. However, not all employers support it.

If not, you can get similar results by using your bank’s free tools to automatically divert a specific portion of your paycheck to savings or another account on a set schedule. This, in conjunction with savings buckets, can produce nearly identical results to splitting your direct deposits.

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