Automatic payments are affiliated with everything from cable bills to gym memberships. Why not get into the habit of automatic savings, too? It’s not a mystery that many people have a difficult time saving money and keeping their high interest savings accounts full. Banks know this as well, and have set up a variety of programs to make automatic deposits into the best saving accounts easy and convenient.
How to Save Money with Automatic Transfers
Many of the nation’s major banks have programs set up to automatically transfer a designated amount of money from your checking account to your savings account. Whether you want to deposit $10 every week, $100 every month or any other desired combination, an automatic transfer can be set up at a time of your choice (perhaps right after you receive your paycheck).
Wells Fargo offers customers an opportunity to automatically transfer either a minimum of $25 monthly, or a minimum of $1 dollar a day Monday through Friday. In fact, if you do not sign up for any automated service at Wells Fargo, they charge you a monthly service fee of $5 unless you keep a minimum balance of $300.
As long as you’re confident you’ll have enough money in your checking account to transfer over (preventing overdraft), this can automatically build your savings account without requiring a second thought. Learning to budget without the saved funds soon becomes second nature as your savings account continues to accrue deposits and interest.
Although some of these programs are offered with no additional fees, verify with your bank to make sure you’re not going to spend more than you’ll save in the process. Fees can often be charged for not maintaining a minimum balance.
Creative Savings Options
Hate keeping track of change? BofA’s “Keep the Change” eliminates this issue by rounding up every debit card transaction to the next dollar and automatically depositing the “change” into your savings account. For example, if a purchase costs $9.25, your checking account will be charged an even $10, while the .75 cents is deposited into your savings account automatically.
BofA will also match you dollar for dollar for the first three months, and five percent after that. The max they will give you is $250 a year though, so don’t get too spend-happy.
The “Save As You Go” option transfers $1 dollar from your Wells Fargo checking account to your savings account each time you make a purchase with your check card, pay bills online or make any automatic payments from your checking account.
Wait, Too Good to Be Accrue?
A word of warning: like the Wells Fargo savings account, BoA’s “Keep the Change” program does require you to have a minimum balance of $300, or a minimum monthly savings deposit (from change) of $25. Iif all of your purchases wind up being $XX.99, you could be in trouble and face fees.
However, if you’re making well over 25 various transactions a month, then it’s likely you’ll be just fine. Regardless of whether you set up automatic transfers from a checking account at your designation, or try out one of these more unusual methods, it might be a great way to get your savings account going.