Can You Direct Deposit into a Savings Account?
By Synchrony Bank
- PUBLISHED August 01
- 3 MINUTE READ
Does Direct Deposit into a Savings Account Make Sense for You?
To directly deposit your paycheck into a savings account, speak with your employer’s payroll department to properly enroll your accounts. You may be able to split your paycheck to directly deposit a portion into a savings account while keeping the bulk in checking to pay bills. This method of saving may be right for you if:
- You have money left over every month after paying your regular expenses and meeting the required minimum balance for your checking account.
- You want to make small deposits in order to build a minimum deposit for another savings product with a higher interest rate.
- You need to impose some discipline on your discretionary spending habits.
Direct Deposit Helps You Put Saving First
You may be more likely to save regularly if part of your paycheck is directly deposited into a savings account — especially since you won’t see the money as immediately available for spending. Other advantages include:
- Your savings earn interest.
- Deposit and withdrawals are easy.
- You can access your savings anytime.
- There is no limit to how much you can save.
While savings accounts earn interest, they tend to have lower yields than some other financial products. This makes them a good choice for short-term funds, such as:
- Rainy day funds. Experts recommend having three to six months’ worth of expenses readily accessible in case of sudden job loss, medical emergencies, or other unexpected expenses.
- Building funds for other deposit products with higher yields. Some products that provide higher yields, such as CDs and IRAs, have a minimum deposit requirement. You can build that required sum through a direct deposit into a savings account.
Opening a Savings Account
If you’re ready to start saving with direct deposit, consider opening an award-winning account with Synchrony Bank. We provide quick withdrawals online, over the phone or with an ATM card**. Open an account online or call us at 1-844-345-5789 and start saving!