Are you having a hard time keeping a lock on your wallet? It can be hard to have the willpower to not touch any of the savings that you set aside. This is why you may want to look into an automatic savings account.
This plan automatically sets aside money into a separate account, which makes it harder for you to use that money for impulse purchases.
American Express® High Yield Savings Account - You earn 0.40% interest rate along with no minimum deposits or monthly fees. Amex High Yield Savings account has been my favorite Hub account for the past 7 years. Using this account to Pull/Push your money is absolutely necessary when you have many accounts. Here's why:
*No dollar limitations for ACH transfers - When you find a top bank rate account, you don't want to be limited to just $5K or $10K transfers. Amex Savings will let you transfers as much as you want whether you are pulling or pushing money from and to an external bank account.
*1 to 2 business days ACH transfers speed - With top-notch user interface, you get your money to another external account or pull money from another bank account within a day or two.
*No loss of interest during transfers - On the day you initiate your transaction on the high yield savings account website, the funds will be reflected in your Current Balance and begin earning interest.
Some other features from American Express High Yield Savings Account include Free Wire Transfers, 3 maximum linked accounts, and maximum 6 ACH withdrawals per month.
Savings account offers are frequently updated. Find the best nationwide Savings/Money Market rates here, and the best Savings account bonuses here. The Axos Bank and CIT Bank accounts offer great rates available nationwide which I recommend.
|Discover Bank Online Savings||$200 Bonus + 0.40% APY||Review|
|Aspiration||1.00% APY + $150 Cash||Review|
|Axos Bank High Yield Savings||Up to 0.61% APY||Review|
|Quontic Bank High Yield Savings||0.55% APY||Review|
|CIT Bank Money Market||0.45% APY||Review|
|American Express High Yield Savings||0.40% APY||Review|
Table of Contents
Advantages of Automatic Saving Accounts
Most people don’t have a set plan for how much money they want to save with every paycheck they get. This will often lead to them not valuing the importance of their savings, and can lead to them using up their whole paycheck without putting anything aside for savings.
With an automatic savings account, you never get a portion of your paycheck to spend in the first place. It goes straight to a separate account where you don’t have to worry about spending it. Here’s a short list of the some of the advantages:
As silly as this sounds, this way of saving can help improve your fiscal responsibility. Because you’re consistently setting aside cash that you earn, you are teaching yourself to live on a smaller amount. This will show you how to get more out of your dollar, and will provide you habits of timid spending that will help structure your life now and in the future.
People save up money for many different reasons. Whether it be for retirement, house payments, or even buying a new car, automatic savings accounts have you covered. You can set up multiple accounts that will help you save for each goal you have in mind, allowing you to easily and accurately set up clear paths to each payment you want to make.
When you set up your accounts, that’s about as much effort as you need to put in. The account keeps going without your input, meaning that the process is so easy you don’t even have to worry about messing with it. No more strenuous math on your part, once you set up your account you can sit back and not have to worry about your savings.
Setting It Up
- Set up a savings account
- Set up a saving account if you haven’t already. Then link this account to your checking account so you can freely transfer money back and forth. An easy way to do this is to set up a checking and savings account with the same bank.
- Set Up a Direct Deposit
- Set up your paycheck to be sent directly into your savings instead of your checking account.
- Figure Out Your Financing
- This is one of the most important parts of the automatic savings account process. Look over your expenses and calculate how much money you need to pay off any necessary bills for the month. Think about things such as grocery spending, housing payments, toiletries, entertainment etc.. This is different for everyone, so make sure you double check your math!
- Split Up Your Total
- Once you have figured out how much you need for your expenses, split up your remaining money into your savings account.
- Set Up Your Automatic Savings Account
- Now that you have calculated how much money you can pull out of your paycheck for savings, it’s time to set up your automatic savings account. Set it up to where your paycheck gets deposited into your savings first, for it to be deposited into your checking account a few days later.
- Verify the Results
- Now that you have your account set up, monitor it! Make sure that you are getting enough money to live comfortably, and saving enough to reach your goals in the future. If you realize that you miscalculated, or want to make a change, you can always adjust your accounts
Bottom Line of Automatic Savings Accounts
Set it and forget it! It’s time for you to meet your future spending goals, and automatic saving accounts are a great way to reach them.
If you find yourself not being able to hold onto your money then make sure you look into this type of account. Consequently, it might let you save big!
You can also take advantage of these free money offers from the latest bank bonuses.