Direct deposit beat out online banking, checkbooks, and ATM cards for Americans’ top money management tool. It’s free, easy, and you only have to set it up once.
Why direct deposit?
If you’re considering moving your paycheck to direct deposit, here is a small (but by no means exhaustive) list of the reasons why setting up a direct deposit can help you manage your money.
1. It saves time and increases security.
Once you have it set up, direct deposit will put your money in your account automatically, so that you don’t have to worry about losing a check or photo depositing a check later. Direct deposit also keeps your incoming pay confidential, and your payment history well-organized in your bank account.
2. It can help you save money.
A direct deposit can help you save big with minimal effort. You can split your paycheck and have the money divided into more than one bank account and can divide your money up into different Goals the moment it hits your account. In your Simple bank account, you can set up a Save until a date Goal to start saving. For instance, you could create a Save until a date Goal that puts a small amount of your paycheck away daily for years without you ever lifting a finger—whether it’s for a rainy day, a future down payment for a house, a vacation, or something else.
Another big way of setting up a direct deposit can help you save is by using it to save up for retirement. You can have a portion of your paycheck sent to your 401k and Roth IRA each pay period. Because the money goes automatically into your retirement accounts, you won’t ever see that money, and you’ll get used to living off a slightly smaller paycheck. One day, you’ll look in your accounts and be amazed at how much you saved for retirement without even trying.
3. It can help you pay bills and avoid fees.
If you have a direct deposit set up and your income is fairly stable, you can also set up automatic bill payments for things like student loans, car payments, energy bills, and even rent. Setting up direct deposit can help you get your bills paid in full and on time–but watch out for bills that might be different from month-to-month, like your water or energy bills.
While many businesses have online portals where you can set up an automatic monthly payment to pull money from your account, you also have the option to push money from your account to a business you owe through a check sent from Simple. For example, if your landlord expects a check in the mail and has no way for you to pay them online, you can have Simple send your landlord a monthly check for rent.
How to set up direct deposit with Simple
If you’re ready to set up a direct deposit, sign in to your account, click on your name, then visit direct deposit, where you can fill out a customized form to give to your employers. You can choose to deposit all of your paychecks with Simple, or just a portion of it. There’s even avoided check printed on the form if your employer requires that. Once you’ve given your employer the form, remember that it could take a couple of pay cycles before your direct deposit is switched over to Simple.
You’re ready to go
Once you’ve set up your direct deposit in your bank account, it’s time to set up some automatic Goals, bill payments, and retirement account savings. Having all of your money in one place really is the best way to make the most of this free money management tool, and a great way to ensure you make the most out of your Simple account.