|Employees value split deposit as a benefit to help them save|
According to a new study commissioned by NACHA—The Electronic Payments Association, 89% of split deposit users see it as an employee benefit that helps them save time and money.
Employees who use split deposit—or split their pay among various accounts using Direct Deposit via ACH—are more likely than non-split deposit users to contribute to savings each month. The study reveals that 93% of employed adults who use split deposit contribute to their savings every month. On average, those individuals who save any amount each month save approximately $467 per month. Conversely, only 77% of employed adults who do not use split deposit add some amount to their savings each month, and 23% contribute nothing.
“Split deposit helps employees develop the habit of saving,” says Janet 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.”
According to the study, split-deposit users save for a variety of reasons. Seventy-four percent contribute to a savings and/or retirement account. Of those surveyed who use split deposit to contribute to a savings account, 83% are saving for “rainy day” fund or emergency fund. Fourteen percent are saving for healthcare-related expenses and another 14% indicated they are saving for entertainment purposes such as dining out, movies, or concerts. An additional 6% are saving towards a college education for their children.
Although 85% of employed U.S. adults indicate that they participate in Direct Deposit via ACH, only 21% of those individuals use split deposit. Of those who use split deposit, 85% agree that is it helping them create a more structured approach to saving. Of those who do not use split deposit, but have access to direct deposit, 71% indicated that they were unaware that split deposit could be requested of their employer.
[This article was posted on March 7, 2012, on the website of ABA Banking Journal, www.ababj.com.]
| TechTopics Plus