Posted February 24, 2016
HERNDON, Va., Feb. 24, 2016 – In support of America Saves Week on Feb. 22-27, NACHA — The Electronic Payments Association® encourages employees to enroll in Direct Deposit via ACH and make use of split deposit — helpful tools to automatically grow savings.
Direct Deposit via ACH, which provides for the electronic deposit of payroll, also enables split deposit, or the ability to divide pay between multiple accounts. According to the results of a soon-to-be-released survey conducted on behalf of NACHA and the Consumer Federation of America by Javelin Strategy and Research, 82 percent of U.S. workers ─ crossing age, income and other demographic categories ─ receive their regular pay using Direct Deposit via ACH. Nearly one in four employees (24 percent) split their payroll deposits, typically placing their deposit in a checking account and also designating a portion of funds to go to a savings account, 401(k), business account, money market or to a prepaid card.
“Direct Deposit via ACH, which facilitates the use of split deposit, is simple, safe and flexible,” said Scott M. Lang, AAP, senior vice president, Association Services at NACHA. “To help individuals more fully realize these benefits, we encourage employers and financial institutions to promote split deposit as a way to regularly put aside a fixed amount or percentage of their pay automatically and directly into savings and investment accounts for emergencies, planned expenses or retirement.”
“America Saves Week promotes the importance and effectiveness of saving automatically, and split deposit is one of the best ways to improve one’s money management and save for one’s long-term financial future,” said George Barany, director of Financial Education for America Saves, a national campaign managed by the nonprofit Consumer Federation of America.
For more information, tools and resources on Direct Deposit via ACH and split deposit, please visit electronicpayments.org. To learn more about America Saves Week, visit americasavesweek.org.
About America Saves Week
America Saves Week is coordinated by America Saves and the American Savings Education Council. Started in 2007, the Week is an annual opportunity for organizations to promote good savings behavior and a chance for individuals to assess their own saving status. Typically thousands of organizations participate in the Week, reaching millions of people.
America Saves, a campaign managed by the nonprofit Consumer Federation of America, uses the principles of behavioral economics and social marketing to motivate, encourage and support low- to moderate-income households to save money, reduce debt and build wealth. America Saves encourages individuals and families to take the America Saves pledge and organizations to promote savings year-round and during America Saves Week. Learn more at americasaves.org and americasavesweek.org. The Consumer Federation of America is a nonprofit association of more than 270 consumer groups that was established in 1968 to advance the consumer interest through research, advocacy and education.