Adoption and awareness of direct deposit continues to build among consumers. A new survey finds that 82 percent of U.S. workers ─ crossing age, income and other demographic categories ─ are paid by Direct Deposit via ACH, up from 74 percent in 2011. Awareness is also strong, with 79 percent of consumers who do not use Direct Deposit via ACH reporting familiarity with the service, according to the results of a new survey conducted by Javelin Strategy & Research on behalf of NACHA—The Electronic Payments Association® and America Saves, a campaign managed by the Consumer Federation of America.
Opportunity to Save Through Split Deposit
America Saves believes that saving automatically is one of the best ways for individuals to save money. The wide use of direct deposit illustrates a key way for consumers to easily save money with each paycheck – by splitting their direct deposits into both a checking and savings account. By saving some money with each paycheck into a separate account, individuals can build savings that can help them cover the costs of emergencies.
“Employers can help their employees save effectively by encouraging them to split their direct deposit into both a checking and savings account,” said George Barany director of financial education for America Saves. “Imagine how much more financially secure households would be if they saved just $50 a month into a savings account through direct deposit. They would have $600 saved in one year, which would cover the cost of many common emergencies like repairing a tire, covering the copay of a doctor or dentist visit, or unexpected travel.”
America Saves for Young Workers
America Saves created a program that is helping youth save in this very way. Over 18 cities and municipalities are integrating America Saves for Young Workers into their summer jobs programs. Through the program, a partnership is created between the employer, one or more financial institutions, and America Saves.