At the end of the day who doesn’t like to earn more money? Well, you can use your direct deposit form at work to do just that. If you don’t already utilized direct deposit for your paycheck at work then you should. It is an easy way to have your paycheck deposit directly in the account of your choice every payday, and its free. You can also choose multiple accounts to deposit to and decide how much money you want put into each one. And if you add an online savings account to your direct deposit form then, in no time, you will earn more money and have an account with plenty of easy access cash if you need it.
Online banks are banks that do not have actually buildings all over the U.S. that you can go visit, but they still offer the same products and services that you current bank does plus “more”. If you are worried about not having a bank to drive down to, don’t be. These banks have 24/7 support through the Internet and your phone so you can always get any questions that you have answered. You can deposit checks from anywhere using a mobile smart phone and even link your online account to your current bank account and transfer money back and forth for free. Because they do not have buildings all over to maintain and staff they can offer you up to 12x the interest rate a “physical” bank can and reduce or eliminate any fees that go along with your account. There are even online banks that are offering cash bonuses just for opening an account.
First, what is direct deposit? It is a way to have your paycheck deposited right into your account every payday. Now how can you use an online savings account and direct deposit to earn more money? First you need to decide how much less money you can afford to take home each week. There is no amount that is too small and definitely no amount that is too much. Then on your direct deposit form you have that amount of money deposited into your online savings account each paycheck. Wondering how to set up direct deposit? You can use a voided check for direct deposit info and bank routing numbers info. You can even set it up for social security direct deposit as well. And then you forget about it. Yes each week you will be bringing home less money but over time you wont even notice it anymore and you will have an account that earns a decent guaranteed interest rate on each automatic deposit.
Lets say that you can afford to bring home $40 less per week. That is skipping one meal dining out and deciding to eat at home. After a year you will have $2,080 saved up in your online savings account. Plus any sign up bonus that you received and plus all of the interest that you earned throughout the year. And the more you have in your account the more interest you will earn. You just set up your account and forget about it until you need it.
Once you set up your online savings account and direct deposit you need to make a rule never to touch the money in your online savings account unless you need it. Everyone can sleep a lot better knowing that they have over $2,000 in an account that is earning interest in case some surprise expenses come up There are usually no fees and your direct deposit will do all of the work for you. Then when you need the money you just transfer it over to your current “physical” bank checking account and you have access to it.