Two banks, one paycheck?

Question

A co-worker and I got on the topic of how bad we are at saving money. She told me that she has $25 put into her US Bank savings account, but her primary bank is Wellsfargo. We both have automatic deposit so her check goes into her fargo account. But her US Bank Savings takes out $25 a week to for that account. I didnt know if this was legal?? Would US bank have to access her fargo account? Or would our employer's bank signal funds in both of the banks first thing?

Answer 1

She has authorised a regular transaction at the wells fargo bank , that when her pay is deposited , $25 is transfered to her savings account at the other bank. All perfectly legal.

There are several ways of arranging this , in terms of which bank does what, but it must be authorised by the account holder.

Answer 2

Many payroll departments only allow direct deposit into one account, although many will allow a deduction into a credit union account also if the company has one.

But you can sign up with your bank to have money taken out of your account on a particular schedule and sent to another bank or to pay a bill. It's legal, and very common.

Answer 3

sure its legal. I do it every week myself with ING. The main check goes to my main account then i shuffle off some money to the higher savings rate.

Answer 4

you allowed to split your check how you want it. All you have to do is give your employer the info and the payroll department sets it up to do it the way she has it. I do the same thing!

Answer 5

I have my direct deposit set up that way through my employer.

You can also set up automatic drafts through your bank.

Either way works, and of course they are legal.