I'm trying to simplify my monthly bill paying. I noticed that all my billers (AT&T, PG&E, student loan organization, others) allow me to register a *savings* account as the bank account to be automatically debited, if I set up automatic payments with them.
(At the moment, I do a little calculation at the beginning of each month and move a rough amount of money from my savings account to my checking account to cover all bills.)
My employer is willing to direct deposit my paychecks into my savings account instead of my checking account. So I'm thinking that I could eliminate the need to touch my bank accounts at all during monthly bill paying time, with the combination of paychecks direct depositing into the savings account, and all monthly bills being paid out of that same savings account. And I'd still earn money market rate interest.
The catch is... On the credit union that holds the savings account's website, they discuss why their own automatic bill pay service (that is, if I go through them instead of going through AT&T, PG&E, etc) does not allow using savings accounts. This is because their money market savings account is a "non-transactional account" and by federal law has a limit on the number of "unsigned transactions" that can be processed per month.
Google didn't reveal much information about these non-transactional accounts and their limit of unsigned transactions. :[
Anyone tried to do what I was thinking of before?
--
Well, I spoke too soon. There's a lot on Google about this "Reg D". It says the limit is six transfers. It's fairly clear about what counts as one of these unsigned transfers or not, but I'm still reading.
(At the moment, I do a little calculation at the beginning of each month and move a rough amount of money from my savings account to my checking account to cover all bills.)
My employer is willing to direct deposit my paychecks into my savings account instead of my checking account. So I'm thinking that I could eliminate the need to touch my bank accounts at all during monthly bill paying time, with the combination of paychecks direct depositing into the savings account, and all monthly bills being paid out of that same savings account. And I'd still earn money market rate interest.
The catch is... On the credit union that holds the savings account's website, they discuss why their own automatic bill pay service (that is, if I go through them instead of going through AT&T, PG&E, etc) does not allow using savings accounts. This is because their money market savings account is a "non-transactional account" and by federal law has a limit on the number of "unsigned transactions" that can be processed per month.
Google didn't reveal much information about these non-transactional accounts and their limit of unsigned transactions. :[
Anyone tried to do what I was thinking of before?
--
Well, I spoke too soon. There's a lot on Google about this "Reg D". It says the limit is six transfers. It's fairly clear about what counts as one of these unsigned transfers or not, but I'm still reading.