A Simple Way to Save
There's a good chance you're missing out on an easy way to save. About 75% of employees use direct deposit to receive their paychecks -- yet only 17% split their deposit into checking and savings accounts, according to a survey from NACHA, the electronic payments association.
Those who automatically split their deposits into two accounts save 30% more than those who take the extra step of manually shifting money into a savings account, according to NACHA. It’s called “paying yourself first,” and it’s one of our 8 Keys to Financial Security.
If you have a portion of your paycheck automatically deposited into a savings account, you lower the risk of spending that cash. Plus, that money will be earning interest in a savings account. Granted, you won't get a high rate of return in today's low interest-rate environment -- but a little is better than nothing.
To find the best rates on savings and money-market accounts, check Bankrate.com or MyBankTracker.com. Visit CheckingFinder.com to see what community banks and credit unions are offering. See Find Higher Rates for Your Savings for more options.