Contact:
Colleen Morrison
NACHA
703-561-3925
cmorrison@nacha.org
People who take advantage of split Direct Deposit, the ability to deposit payroll into multiple accounts, do so to save, according to a new study by NACHA — The Electronic Payments Association® and PayItGreen. New findings from the PayItGreen Survey 2010, unveiled during National Payroll Week, reveal that 19 percent of employees who take advantage of Direct Deposit use split deposit. In using it, 73 percent tuck money away in savings or money market accounts.
“Split deposit automates your savings,” said Janet O. Estep, president and CEO of NACHA. “Having a portion of your paycheck delivered directly to a savings account means that you never become reliant on spending that money in the first place. Split deposit is the simple, smart, and safe way to save.”
The PayItGreen Survey 2010 also found that many employees are opting to split their Direct Deposit into more than two accounts. Of those who split their Direct Deposit:
* 74 percent put funds into two accounts.
* 21 percent divide them up into three accounts.
* 5 percent deposit money into three or more accounts.
In addition, offering split deposit also may help drive employee adoption of Direct Deposit. According to the survey, 69 percent of employees find the ability to split their pay over multiple accounts somewhat to extremely motivating in choosing Direct Deposit.
“Now more than ever, we all want to better prepare for our financial futures,” indicated Estep. “In addition to saving for retirement, education, homes, and other large expenses in IRAs, 529 plans, and money market accounts, depositing even a small percentage of our pay to save today will help us prepare for tomorrow. Split deposit provides the ease and flexibility to save automatically with each paycheck.”
People save more money when they use split deposit. According to the Consumer Federation of America, a large majority of Americans (83 percent) agree that the most effective way to build personal savings is to do so automatically by transferring funds regularly from a paycheck or checking account to their savings or investment accounts. A separate study from NACHA concluded that consumers who split their Direct Deposit save up to $90 more per month than those who use another method to save.
About the PayItGreen Survey 2010
The PayItGreen Survey 2010 is based on data collected by Javelin Strategy & Research. The online survey polled 5,000 U.S. adults. The survey is weighted to be nationally representative of employment status (e.g. full-time, part-time, etc.), gender, race, ethnicity and income.
About PayItGreen
PayItGreen is a coalition led by NACHA — The Electronic Payments Association whose members are committed to educating consumers and businesses about the positive environmental impacts of choosing electronic payments, bills, and statements over paper. PayItGreen members are small-to-medium-sized businesses, large corporations, credit unions, banks of all sizes, regional payment associations, processors and other financial industry service providers and stakeholders. To learn how your company can benefit from membership, please visit www.payitgreen.org/business.
About NACHA — The Electronic Payments Association
NACHA supports the growth of the ACH Network by managing its development, administration, and governance. The ACH Network facilitates global commerce by serving as a safe, efficient, ubiquitous, and high-quality electronic payment system. NACHA represents nearly 11,000 financial institutions through 18 regional payments associations and direct membership. Through its industry councils and forums, NACHA brings together payments system stakeholder organizations to encourage the efficient utilization of the ACH Network and develop new ways to use the Network to benefit its diverse set of participants. To learn more, visit www.nacha.org, www.electronicpayments.org, and www.payitgreen.org.
About National Payroll Week
Taking place September 6-10, 2010, National Payroll Week celebrates the hard work by America's 156 million wage earners and the payroll professionals who pay them. Together, through the payroll withholding system, they contribute, collect, report and deposit approximately $1.7 trillion, or 71.9 percent, of the annual revenue of the U.S. Treasury. For more information, visit www.nationalpayrollweek.com.
– People who take advantage of split Direct Deposit, the ability to deposit payroll into multiple accounts, do so to save, according to a new study by NACHA — The Electronic Payments Association® and PayItGreen. New findings from the PayItGreen Survey 2010, unveiled during National Payroll Week, reveal that 19 percent of employees who take advantage of Direct Deposit use split deposit. In using it, 73 percent tuck money away in savings or money market accounts.
“Split deposit automates your savings,” said Janet O. Estep, president and CEO of NACHA. “Having a portion of your paycheck delivered directly to a savings account means that you never become reliant on spending that money in the first place. Split deposit is the simple, smart, and safe way to save.”
The PayItGreen Survey 2010 also found that many employees are opting to split their Direct Deposit into more than two accounts. Of those who split their Direct Deposit:
- 74 percent put funds into two accounts.
- 21 percent divide them up into three accounts.
- 5 percent deposit money into three or more accounts.
In addition, offering split deposit also may help drive employee adoption of Direct Deposit. According to the survey, 69 percent of employees find the ability to split their pay over multiple accounts somewhat to extremely motivating in choosing Direct Deposit.
“Now more than ever, we all want to better prepare for our financial futures,” indicated Estep. “In addition to saving for retirement, education, homes, and other large expenses in IRAs, 529 plans, and money market accounts, depositing even a small percentage of our pay to save today will help us prepare for tomorrow. Split deposit provides the ease and flexibility to save automatically with each paycheck.”
People save more money when they use split deposit. According to the Consumer Federation of America, a large majority of Americans (83 percent) agree that the most effective way to build personal savings is to do so automatically by transferring funds regularly from a paycheck or checking account to their savings or investment accounts. A separate study from NACHA concluded that consumers who split their Direct Deposit save up to $90 more per month than those who use another method to save.
About the PayItGreen Survey 2010
The PayItGreen Survey 2010 is based on data collected by Javelin Strategy & Research. The online survey polled 5,000 U.S. adults. The survey is weighted to be nationally representative of employment status (e.g. full-time, part-time, etc.), gender, race, ethnicity and income.
About PayItGreen
PayItGreen is a coalition led by NACHA — The Electronic Payments Association whose members are committed to educating consumers and businesses about the positive environmental impacts of choosing electronic payments, bills, and statements over paper. PayItGreen members are small-to-medium-sized businesses, large corporations, credit unions, banks of all sizes, regional payment associations, processors and other financial industry service providers and stakeholders. To learn how your company can benefit from membership, please visit www.payitgreen.org/business.
About NACHA — The Electronic Payments Association
NACHA supports the growth of the ACH Network by managing its development, administration, and governance. The ACH Network facilitates global commerce by serving as a safe, efficient, ubiquitous, and high-quality electronic payment system. NACHA represents nearly 11,000 financial institutions through 18 regional payments associations and direct membership. Through its industry councils and forums, NACHA brings together payments system stakeholder organizations to encourage the efficient utilization of the ACH Network and develop new ways to use the Network to benefit its diverse set of participants. To learn more, visit www.nacha.org, www.electronicpayments.org, and www.payitgreen.org.
About National Payroll Week
Taking place September 6-10, 2010, National Payroll Week celebrates the hard work by America's 156 million wage earners and the payroll professionals who pay them. Together, through the payroll withholding system, they contribute, collect, report and deposit approximately $1.7 trillion, or 71.9 percent, of the annual revenue of the U.S. Treasury. For more information, visit www.nationalpayrollweek.com.
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