5 Bills You Should Autopay Quarterly Instead of Monthly
Written by
Katie Wudel
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Autopay has emerged as a convenient tool for managing finances. Roughly 75% of consumers use autopay for at least one bill, according to Fiserv’s Derek Swords.
While autopay is commonly used monthly, there are significant advantages to setting some bills on a quarterly autopay schedule. Here are five bills you should consider paying quarterly instead of monthly.
1. Utility Bills
Utilities like electricity, water, and gas are often subject to seasonal fluctuations. By opting for quarterly payments, you can avoid the hassle of monthly variances and budget effectively.
Utilities often average out usage over the quarter, allowing for a predictable payment amount. This approach also reduces the number of transactions you need to track each month, streamlining your financial management.
2. Insurance Premiums
Many insurance companies, including those for health, auto, and home, offer discounts for customers who pay their premiums quarterly or annually. By choosing a quarterly autopay schedule, you can potentially save money while still enjoying the convenience of automatic payments. Furthermore, this reduces the frequency of payment-related tasks, such as reviewing policy details or updating payment information.
3. Subscription Services
Streaming services, magazines, and other subscription-based models often provide options for longer billing cycles, including quarterly payments. This not only often comes with a cost-saving benefit but also simplifies the management of these services. By consolidating multiple monthly subscriptions into fewer quarterly payments, you can effectively track expenses.
4. Property Taxes
If your locality allows it, paying property taxes quarterly can help in spreading out this significant expense over the year. This approach can be particularly beneficial for those who may not have the cash flow to cover a large annual or bi-annual tax bill. Autopay ensures timely payments, avoiding late fees or penalties associated with property tax payments.
5. Loan Repayments
Certain types of loans, such as personal loans or educational loans, may offer the flexibility of quarterly payments. Switching to a quarterly schedule can align better with your income cycle, especially if you receive bonuses or commissions quarterly. It also allows for more significant payments at a time, potentially reducing the total interest paid over the life of the loan.
Benefits of Autopay
Autopay is a tool that, when used wisely, can lead to better financial organization and savings. However, it’s important to regularly review your autopay settings to ensure they align with your current financial situation and goals.
Quarterly autopay offers a balance between convenience and the opportunity to review and adjust your payments periodically. By considering these five bills for quarterly autopay, you can streamline your finances, possibly save money, and reduce the stress of monthly bill management.
Bottom Line
While autopay is a powerful tool for managing recurring payments, the choice between monthly and quarterly schedules depends on individual circumstances and the nature of the bill. Opting for a quarterly autopay for certain bills can offer financial advantages and simplify personal finance management, contributing to a more organized and efficient approach to handling recurring expenses.
Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.
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