Have you ever deposited a check into your savings account? If not, you are one of many.
When it comes to depositing checks, very few people think about their savings. Truthfully, many people don’t even know that their savings account is an option. So, for those of you wondering, allow me to provide you with a clear answer to the following question: can you deposit a check into a savings account?
Yes, you can deposit a check into a savings account. In fact, there are a number of benefits if you choose to do so. For example, savings accounts allow you to earn interest on the money you deposit, which will help your money grow over time. Also, depositing a check into savings helps restrict your money, which can keep you from overspending.
So, not only is it possible to deposit a check into a savings account, but it might actually be in your best interest.
And that’s exactly why I’m writing this article. In the rest of this guide, I am going to answer a couple other questions you might have, as well as, go over some of the main benefits of depositing money into your savings account.
Let’s get to it!
Benefits Of Depositing A Check Into A Savings Account
As I mentioned in the intro, there are a number of benefits to depositing a check into savings. And in this section, that’s exactly what I’m going to cover. In fact, here are the top 3 reasons.
1. Your Money Earns Interest
One of the most obvious, and best benefits of depositing a check into savings is that the money will have the opportunity to earn a little bit of interest. And while it might not make you rich, it can result in hundreds of dollars per year. And, why would you pass up on that?
Now, before we go much further, I want to address something important. If your savings account doesn’t earn between 1% and 2% each year, then you should seriously consider opening a better savings account. If you are earning less than that, then your money won’t keep pace with inflation, which means it will actually lose value.
If you’re looking for a better savings account, here at Be The Budget, we recommend Axos Bank’s High Yield Savings. It only takes about 15 minutes to open an account online, it offers a great interest rate, a low opening deposit, and there are no monthly maintenance fees or minimum balance requirements. Click here to learn more about an Axos High Yield Savings Account.
2. Less Likely To Spend It
Let’s be honest, one of the main reasons for a savings account in the first place, is to restrict yourself from spending all your money. Sure, you can pull money out of a savings account whenever you want, but this small layer of inconvenience can be just enough to make you think twice about spending the money; and instead, opt for a better financial decision.
So, if you have a check to deposit, and you don’t want to spend it, then a savings account is one of your best options.
3. Your Money Is Still Accessible
While depositing money into your savings account can help you restrict your spending, the money is still liquid. In other words, you still have almost instant access to it if you absolutely need it.
Unlike a CD, for example, which requires you to wait a set amount of time before you can access your money penalty-free, savings accounts earn interest while allowing you complete access to your money.
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How To Deposit A Check Into A Savings Account
Ok, so we’ve discussed the benefits of depositing a check into savings, but how do you actually go about it?
Well, if you want to deposit a check into your savings account, you have a few different options. But, if you’ve never done so, and you are unclear on how the whole process works, here is a quick walk-through.
The first, and most convenient option, is to mobile deposit your check. These days, just about every major financial institution has an app that allows you to mobile deposit checks with your smartphone. And while every app is slightly different, you will probably have to follow a variation of these steps:
- Log into your banking app
- Click the option to mobile deposit a check
- Select the account to which you would like to deposit the money (in this case, your savings account)
- Enter the value of the check
- Endorse your check
- Take a photo of the front and back of the check
- Confirm and submit your deposit
If you do choose to mobile deposit a check, be sure not to throw the check away for about a week. It’s just a good idea to keep it on hand in case you run into any problems with the deposit and you need to discuss it with your bank.
These days, ATMs can do more than just pull money from your account. In fact, they can do the opposite. Seriously, if you want to deposit a check into savings, you can actually do so through an ATM. You just have to select the option to deposit a check, insert your check (or checks) into the machine, select your savings account, and you’re pretty much good to go.
If you don’t like the idea of a mobile deposit, this is a rather convenient alternative to waiting in line, inside the bank, or going through the drive-through.
The most obvious method for depositing a check into your savings account, is doing so in-person, through a teller at the bank. All you have to do is let the Teller know that you would like the check to go into savings, and they will take care of everything for you.
So, have you ever deposited a check into a savings account? If so, what did you find to be the biggest benefit?
Be sure to comment below.
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