PERSONAL FINANCE

Save Money with Auto Pay

These days, you can pay your mortgage or rent, utilities, insurance, loans, and credit cards every month without lifting a finger.

Automation is a great time saver, it can ensure your payments are on-time, and it can also reduce your vulnerability to identity theft.

However, make sure you use it wisely.

Getting started

There are few different methods you can use to automate paying your bills.

The most convenient option is to set up Bill Pay in Online & Mobile Banking.

Simply log into your checking account, input who, how much, and when you want to pay, and you're all set . You can do it as a one-time thing or set up recurring payments.

Another option is to set it up directly with your creditor or service provider.

Generally, all you need to do is let them know when you want the payment taken out of your checking account and submit an authorization form.

For some bills, you may also have the option of having the payment charged to your credit card. To avoid interest, don’t charge more to your card than what you can pay in full the next month.

Avoid complications

Putting your bills on auto-pay does not mean that you can completely forget about them.

First, you want to make sure that you have enough money in your account to cover the withdrawals.

For example, if your $1,200 mortgage payment is supposed to be deducted, but there is only $800 in your account, then either your account will become overdrawn when the debit occurs or the debit won’t occur and the bill won’t be paid. Either outcome can result in fees.

You also want to verify that the withdrawal actually occurred when it was supposed to. Mistakes sometimes happen, and you are still responsible for paying your bills on time, even if someone else messed up.

Don’t forget to review your statements too. If you don’t, you may miss an unauthorized charge or notice of a change in terms.

Lastly, if you close a checking account or credit card, be sure that you update your bill-pay information so that future payments are assigned to your new account.

Automate savings too

Don’t just auto-pay…auto-save as well!

You typically have two options for auto-save: have a portion of your paycheck directly deposited into your savings account, or set up an automatic, monthly or biweekly transfer from your checking account to your savings account.

If you choose the second option, it is best to schedule this to coincide with your payday.  By automating your savings, it will be easier to build toward your goals and establish an emergency fund.

Remember, every little bit counts. Even if you're on a tight budget, setting aside as little as $5 a paycheck will add up in the long run. 

Save time and money

Automating your finances in Online & Mobile Banking can save you time and money. 

You'll also have the peace of mind that comes with knowing your payments will be on time each month. This can also help improve your credit score. 

However, don't just set it and forget it. Make sure you have enough funds in your account to cover your bills, and make sure the payments are being processed when they're supposed to be.