Automatic transfers allow account holders to transfer from checking to savings accounts, or vice versa, depending on their preference. But why in the world would someone want to transfer their money automatically instead of manually? Even better, why would they want to transfer their money at all? Let’s look more closely at the benefits of both …
Why Transfer From Checking to Savings Accounts?
One of the reasons that individuals prefer to move money from their checking to their savings account is the ability to save. Typically, with a checking account you have tons of access to your money, including your ATM/Debit card and your checks. However, you can limit this type of access with your savings account, which allows you to actually hold on to your money. So let’s say you receive your paycheck for $1,000 and you want to make sure that you don’t touch $500 of it. By transferring it over, you can sort of hide it from yourself.
Another benefit of deciding to transfer from checking to savings accounts is taking advantage of the required minimum balance. Many savings accounts require that you keep a certain amount in them to stay open. You can use this requirement to your advantage as an incentive to save.
The Benefits of Automatic Transfers
So now you may be wondering how you can benefit from automatic transfers. Those who utilize them find them very beneficial because they don’t have to worry about making sure that they transfer from checking to savings accounts on their own. For example, suppose you’re taking a trip out of town to a place that does not carry your bank. However, you want to make sure that your money is transferred over. By having your account set up to move it over automatically, you can eliminate this step and enjoy your trip.
If the idea of being able to transfer from checking to savings accounts appeals to you then automatic transfers are probably that much more enticing. So take time to look into the options your bank offers. You may just be able to add this feature to your account today.