Top Five Uses for Automatic Transfers
Looking for a way to systematically pay down debt or meet a savings goal? Learn about the top five uses and benefits of automatic transfers to see if they are the right solution for you. Online bill payment allows users to set up one-time or recurring transfers for quick and easily tracked payments. Additionally, automatic transfers allow for easy and timely payments without extensive monitoring. Check out the different ways you can use automatic transfers to manage your checking accounts below.
- Save for a goal: Use automatic transfers to set aside a specific portion of your directly deposited paycheck each month. You can contribute to an emergency fund, retirement account, home savings account or rainy day fund. Automatic transfers allow you to save without even thinking about it – and should you need those funds for an unexpected expense, it’s a simple as a transfer back into your checking account.
- Pay down large debt: Whether it’s making regular mortgage payments, paying down a car loan or repaying student loans, automatic transfers put an automatic dent in your debt. The sooner you reduce the principal on large debts like these, the better. It will decrease your future interest and ensure you don’t fall into default thanks to a foggy memory. Plus, should you want to make additional payments toward the principal, it’s no problem. They can be added as a one-time payment and your automatic online bill payment will still go through.
- Cover monthly bills: Take care of utilities, insurance payments, gym memberships, credit card bills and even charitable donations. Anything with a regular monthly balance is easy to pay off or contribute to with automatic transfers. While your credit card bill or utilities bill may fluctuate more each month, there are ways to use automatic bill pay. Making the minimal payment is not the ideal situation when paying down debt; however, if you set up an automatic payment each month for at least the minimum amount due, you know you’ll never get penalized for a late payment. You can always add an additional payment, or carry a positive balance on that account if need be.
- Improve credit score: Automatic transfers mean your payments are guaranteed to be made on time consistently. This can help you repair and even improve your credit score. Plus, having the funds needed to repay your debt automatically remitted after your paycheck is deposited helps you stick to your budget throughout the month.
- Maintain precise records: Need to dispute a claim that payment wasn’t remitted? Want to confirm your charitable donations for the tax year? Curious how much you’ve been able to save this year? Online bill payment and automatic transfers provide easy access to transaction records so you know how much you spent and when. You won’t get that kind of organization from sending checks in the mail!
Benefits of online bill payment
Automatic payments are faster and easier than other methods of bill pay. Plus, the security measures taken by your bank and discounts offered by payees often make them safer and more affordable than standard payment methods. If any of the primary uses for automatic transfers above make sense for your financial situation, consider opening a checking account and enrolling in automated online bill payment . You can also use online banking to make transfers between accounts, even when they are at different institutions, so it’s easier to contribute or withdraw funds. Learn more about the benefits of automatic transfers for your savings and checking accounts by speaking to a representative at your bank.
Sponsored content was created and provided by RBS Citizens Financial Group.