The study reported that 89 percent of split-deposit users see split-deposits as an employee benefit that helps them save time and money, and 93 percent of employed adults who use split deposit save money every month. The savings of those individuals amounts to a monthly average of $467. Of employees who do not use split deposit, only 77 percent save monthly, and 23 percent save nothing.
“Split deposit helps employees develop the habit of saving,” said Janet O. Estep, President and CEO of NACHA. “Splitting a fixed amount or percentage of their pay with Direct Deposit via ACH enables employees to safely and automatically put aside money directly into savings and investment accounts for emergencies, planned expenses, or retirement.”
What are these split-deposit users saving up for?
- 83 percent are saving for a “rainy day”
- 74 percent contribute to a savings and/or retirement account
- 14 percent are saving for healthcare-related expenses
- 14 percent are saving for entertainment purposes
- 6 percent are saving toward their children’s college education
Only 21 percent of employees currently use split deposit, out of the 85 percent who participate in Direct Deposit via ACH, and 85 percent of those who use it agree it is helping them create a more structured approach to saving.
Every employer who uses Direct Deposit has the option of offering split deposit, but of the employees with access to it, 71 percent indicated that they were unaware that split deposit was an option.
“Employees should ask their payroll departments about splitting pay with Direct Deposit via ACH to help them save,” said Estep. “And employers should consider adding the valuable benefit if it is not currently offered, and encouraging its use.”
You can learn more about splitting your pay with Direct Deposit via ACH by visiting ElectronicPayments.org. Understanding your options will ensure you’re always taking advantage of every opportunity to grow your savings.