During America Saves Week, February24-March 1, NACHA encourages employees to learn more about the benefits of Direct Deposit and split deposit, and encourages employers to support and advocate for the use of these tools as ways to increase savings.
Herndon, VA (PRWEB) February 24, 2014
Today, almost 75 percent of employed consumers receive their pay through Direct Deposit via ACH, according to NACHA – The Electronic Payments Association. 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. Despite the fact that almost 90 percent of employees who use split deposit view it as a tool that helps them save time and money, only 21 percent of employees use split deposit. In support of America Saves Week, February 24-March 1, NACHA encourages employees to explore the savings benefits Direct Deposit and split deposit provide.
“Split deposit, enabled through Direct Deposit via ACH, is an easy and automatic way to help employees save time and money,” said Janet O. Estep, president & CEO of NACHA. “Employees can set aside a fixed amount or percentage of their pay to a savings, retirement or investment account to grow their savings in a structured and consistent manner.”
Recent data from GCI’s Consumer Financial Life Survey support the fact that Direct Deposit via ACH is an effective way to start saving, particularly among the demographics for whom saving is most challenging. Among below-median-income households in the U.S., 36 percent who receive their pay through Direct Deposit have accumulated savings of at least three month’s income. Approximately half as many who get paid through alternative means have accumulated similar savings.
“Using Direct Deposit via ACH and split deposit is a simple and smart way for employees to start saving,” said Estep. “During America Saves Week, February24-March 1, NACHA encourages employees to learn more about the benefits of Direct Deposit and split deposit, and encourages employers to support and advocate for the use of these tools as ways to increase savings.”
For more information, tools and resources on Direct Deposit via ACH and split deposit, please visit http://www.electronicpayments.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.
About GCI & the Consumer Financial Life Survey
GCI tracks U.S. households' financial behaviors and their motivations--with a special emphasis on payments--in an ongoing quantitative survey: the Consumer Financial Life Survey. Twenty-four thousand U.S. consumers have participated since the survey launched in 2009. The survey insights are available directly to financial services providers in a series of brief, topically focused reports. GCI is a wholly owned subsidiary of McKinsey & Company focused on marketing research, benchmarking and analytics in payments.
Additional components of the Consumer Financial Life Survey data will be explored at PAYMENTS 2014, the premier education event for the payments industry, which will take place April 6-9, in Orlando, Fl. On, Tuesday, April 8, David Stewart, Senior Expert at McKinsey & Company and Dominic Venturo, Chief Innovation Officer, Payment Services, at U.S. Bank, will engage attendees in a candid conversation about retail banking in a session titled Are Bank Innovations Meeting Salient Consumer Needs? Specifically, the session will examine changes in consumer payments habits, the evolution of electronic payments, and the strategic implications for banks, using insights from the latest Consumer Financial Life Survey.
For more information about the session or PAYMENTS 2014, visit https://payments.nacha.org.
About 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 provides a safe, secure, and reliable network for direct account-to-account consumer, business, and government payments. Annually, it facilitates billions of Direct Deposit via ACH and Direct Payment via ACH transactions. Used by all types of financial institutions, the ACH Network is governed by the fair and equitable NACHA Operating Rules, which guide risk management and create payment certainty for all participants. As a not-for-profit association, NACHA represents more than 10,000 financial institutions via 16 Regional Payments Associations and direct membership. Through its industry councils and forums, NACHA brings together payments system stakeholders to foster dialogue and innovation to strengthen the ACH Network. To learn more, please visit http://www.nacha.org, http://www.electronicpayments.org, http://www.payitgreen.org, and direct.nacha.org.