How to Create a Recurring Deposit
Recurring deposits are a necessary personal finance tool. Many employers direct deposit paychecks into bank accounts. By setting recurring deposits yourself, you have the ability to automate savings. You can achieve your financial goals sooner and with greater ease because of the discipline than if you make deposits on your own. Save to fund your retirement, college education, investment or estate planning.
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Things You'll Need
- Bank account information
- Deposit account information
- Internet access
- Paycheck information
Instructions
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Setting Up the Recurring Transfer
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1
Decide how much money you are going to transfer. Consider where you are transferring the money to and for what purpose.
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2
Decide what account to deposit your recurring transfer into. The simplest transfers are those going to accounts linked to your primary account. For example, if you have a checking account, you can link your savings account at that same bank. If you want to transfer to an account at another bank, you will have to link the accounts. Follow the specific instructions from your financial institution.
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3
Decide how frequently you are going to transfer the money. For many people, doing recurring transfers at the same interval as their paychecks works best. Others prefer to do just a single monthly transfer.
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Tips & Warnings
Follow your bank's specific instructions and look out for transaction limits. Some banks limit the number of transactions you are allowed to initiate per month.
Check your statement each month to verify transfers.
Pay yourself first. Make it harder to change automatic savings.
References
Resources
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