Ask the Readers: Do You Split Your Direct Deposit?

by Jason Unger

While doing some research into direct deposit statistics, I came across an interesting release (PDF) as part of America Saves Week (which happened in February).

The Consumer Federation of America (CFA), which managed the campaign, is encouraging people to split the direct deposit of their paychecks — meaning, have some of it go directly into their checking account and some of it go into a savings account.

“Just like retirement savings, if you automatically save the money, you are less likely to spend it,” said Jan Estep, president and CEO of NACHA, the Electronic Payments Association.

“Splitting Direct Deposit is easy to set up for new employees or established Direct Deposit users. The process takes minutes to complete. Just talk to your employer.”

According to a survey by the CFA, 39% of employees eligible to split their direct deposit into different accounts do. While the CFA considers that low, I’m actually surprised it’s that high.

Some other facts:

  • 66% of all employees use direct deposit
  • 59% of employees with access to direct deposit have the option to split
  • Consumers who use direct deposit save $90 more per month than those who don’t

I’ve never considered splitting direct deposit before, but want to know if you have. So, do you split your direct deposit?

Answer the poll below and then let me know why in a comment.

[poll id=”17″]

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