Study Reveals Small Businesses Enable Employee Savings with Direct Deposit

Colleen Morrison                                                                                    

HERNDON, Va., Feb. 24, 2011 — Small businesses empower employees to save automatically using Direct Deposit, according to a new study from NACHA — The Electronic Payments Association. Revealed today as part of America Saves Week, the study unveils that nearly three-quarters (71 percent) of small businesses who offer Direct Deposit provide the option for employees to split their deposit into multiple accounts.

“By enabling split deposit, small businesses are delivering a valuable employee benefit,” says Janet O. Estep, NACHA president and CEO. “Split deposit means employees put money aside before it hits their checking accounts, and they don’t become reliant on it for daily expenditures. It is a simple, safe, smart, automatic way to save.”

Delving deeper into the findings, the study concluded that there is a direct correlation between the size of the business and the likelihood of the organization providing split Direct Deposit. The larger the business, the greater the ratio offering split deposit. Specifically:

  • Eighty-one percent of businesses with 101 or more employees offer split deposit as compared to 65 percent with two to five employees.
  • Of organizations with revenues of $15 million to $19.99 million, 76 percent offer split deposit contrasted with 61 percent of those with revenues under $500,000.

“The research showed that there is a continuous degree of variation in split deposit use by company size, both when reviewing the number of employees and the annual revenue,” said Estep.

When analyzing the findings across industries, there was a clear consistency in the percentage of companies offering split deposit. There were nominal variations between professional services (73 percent of those offering Direct Deposit offer split deposit); personal, maintenance, food services (75 percent);  finance, insurance, real estate (67 percent); retail, wholesale (70 percent); and manufacturing, trade (70 percent).

People save more money when they use split deposit. According to the Consumer Federation of America, the managing organization responsible for America Saves Week, 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.

For more information on split Direct Deposit, visit


NACHA Small Business Study

The NACHA study surveyed 2,249 small businesses on adoption of Direct Deposit. To qualify to participate in the study, the business must have had more than one employee, used a business checking account, and had revenue of less than $20 million in 2009. Responses were gathered via a 51-question, online survey fielded to financial decision makers. Complete study findings will be available in April 2011.

NACHA — The Electronic Payments Association

NACHA manages the development, administration, and governance of the ACH Network, the backbone for the electronic movement of money and data. The ACH Network serves as a safe, secure, reliable network for direct consumer, business, and government payments, and annually facilitates billions of payments such as Direct Deposit and Direct Payment. Utilized by all types of financial institutions, the ACH Network is governed by the NACHA Operating Rules, a set of fair and equitable rules that guide risk management and create certainty for all participants. As a not-for-profit association, NACHA represents nearly 11,000 financial institutions via 17 regional payments associations and direct membership. Through its industry councils and forums, NACHA brings together payments system stakeholders to enable innovation that strengthens the industry with creative payment solutions. To learn more, visit,, and

America Saves

America Saves is a nationwide campaign in which a broad coalition of nonprofit, corporate, and government groups help individuals and families save and build wealth. Through information, advice, and encouragement, the coalition assists those who wish to pay down debt, build an emergency fund, save for a home, save for an education, or save for retirement. Overall management for the campaign is being provided by the nonprofit Consumer Federation of America (CFA). CFA is a federation of some 300 consumer education, advocacy, and cooperative organizations dedicated to advancing the consumer interest.

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