Take away the struggle of saving by setting up automatic methods and watch your savings account grow.
Did you know 69% of Americans have less than $1000 in their savings account? With many people living paycheck to paycheck, the economic challenges of the pandemic, and prioritizing immediate needs over long-term financial planning, it is not surprising that many people struggle to save. Whether you are just getting started or want to grow your existing nest egg, creating a savings plan that automatically puts money away is the way to go.
Automating your savings can help you to:
How to Automate Savings:
There are many different ways to set up automated savings at Chesapeake Bank, including using RoundUp, setting up an automatic transfer, taking advantage of your employer's 401K, and starting an Individual Retirement Account (IRA).
RoundUp each transaction:
Round up each debit card transaction the nearest dollar, moving the change into your savings account, with RoundUp.
For example, if you swipe your debit card at Christmas Mouse for $14.80, $.20 will automatically be transferred into your savings account at the end of the day.
Contact your local branch to get started with RoundUp today!
Set up a transfer using Online Banking:
Another effective way to automate your savings is to set up an automatic, recurring transfer.
Those enrolled in online banking (enroll here, it is free!) may transfer funds from one account to another.
Using the browser version or our mobile app, you can set a reoccurring transfer each month (or weekly, bimonthly, quarterly, etc.) that will automatically pull funds from the account of your choosing and deposit it in another account.
Split up your direct deposit:
Did you know that many employers allow you to split your direct deposit into different accounts? It's true!
Many people have the opportunity to direct deposit a specific dollar amount or percentage of their paycheck into multiple accounts. This is a simple way to put money into your savings account each paycheck automatically without even thinking about it.
Contact your Human Resources (HR) department to see if they offer split direct deposit.
Take advantage of your 401K:
It is important to start saving for retirement early so that your funds have the opportunity to grow. If you have an employer that offers you a 401K retirement plan, take advantage of it! Like splitting your direct deposit into multiple savings accounts, 401K contributions are typically taken right out of your paycheck.
If you are lucky enough to have an employer that matches 401 K contributions, make a plan to max out these contributions as soon as you can". It is free money deposited automatically into your retirement savings--ready to compound and work for you!
Contact your HR department to contribute to your 401K and automatically start saving for retirement.
Open an IRA:
Opening an Individual Retirement Account (IRA) is another great way to grow your savings with tax benefits. You can use it to supplement your 401K or even use it as your primary retirement account if your employer does not offer a 401K.
Just like with a 401K, you can automate saving money with an IRA by setting up direct deposits from your paycheck. You can also set up an automatic, recurring transfer to your Chesapeake Bank IRA from your other Chesapeake Bank accounts!
How can we help?
No matter what method you choose, automating how you save money allows you to "set it and forget it" to save even more.
Whatever your savings or financial goals are, we want to help. Visit our website or your local branch to get started.
Don't forget we have a variety of calculators, coaches, and budget tools, like our personal finance manager, to help you identify a savings goal that's right for you.