Comments on: Credit Card Bills: Auto-Pay from Online Savings

By: Credit Card Stuff To Sweat Over | Sweating The Big Stuff

Credit Card Stuff To Sweat Over | Sweating The Big Stuff — Mon, 19 Apr 2010 17:45:56 +0000

[...] their bills on time shows responsibility. One way to stop worrying too much about this is to simply set up autopay for all of your bills. Money will be deducted from your bank account and the bills will always be paid on time. If you [...]

By: Names are Good. I wish I had one.

Names are Good. I wish I had one. — Thu, 17 Sep 2009 13:33:42 +0000

Thanks for the informative article. At BofA, I’m getting a whopping .01% on money market and at the brokerage I’m getting a phenominal .06% on my money market.

By: Brian Carter

Brian Carter — Mon, 31 Aug 2009 01:17:34 +0000

Good tips. I don’t autopay mine because as Eric says, they fluctuate, but on the stubborn ones, particularly one where they just jumped my 8% to 20%, I pay substantially more than the minimum monthly to chip away. I do the same with my student loans because they weren’t decreasing noticeably enough for me at the suggested payment.

By: Ann

Ann — Thu, 27 Aug 2009 21:59:30 +0000

yeah!there is no problem regarding savings account, just as long as you know how to limit your transfer.

By: Josh Heckthorn

Josh Heckthorn — Fri, 07 Aug 2009 06:45:22 +0000

Sarah sums everything up nicely. And yes, you won’t have a problem with “online” savings accounts as long as you limit the transfers to 6 times per month.

I can certainly understand that some people may not feel comfortable using autopay for bills, but I’ve done it for a long time and have never had an issue…fingers crossed .

By: Sarah

Sarah — Thu, 06 Aug 2009 17:05:28 +0000

I have been paying my bills incl. credit cards from my online savings account for a while now. I keep all my excess cash in my savings account just to earn interest, it’s not necessarily my emergency fund. I’ve never had any problems with my credit card co. taking out anything more than normal, but once I did exceed the 6 time limit. I think as long as you’re opening an “online” savings account, the 6 withdrawal limit applies to online transactions. I also use Quicken to keep track of my expenses so I know exactly how much should be taken out of my savings account each month for my bill.

I do like the idea of autopaying from your savings account, but you definitely have to continue managing your money so you know to expect.

By: Lori Duprey

Lori Duprey — Thu, 06 Aug 2009 11:42:56 +0000

I have to caution anyone who pays bills out of their savings account! I used to do this and recently had to switch everything to come out of checking. Reason, Reg D- a federal law. He mentioned the 6 transfer limit, but check with your bank, because I found out that only 3 of those 6 could be done online or at an ATM. The other three had to be done in person… yikes! I got hit with a $15 fee twice this year, so I am changing my ways. Plus, if it happens a third time, they have to close your account, due to federal regulations!

I don’t know if this is every bank, or just my local bank, but I got very frustrated with this rule and am now in the process of changing how all of my accounts are working for me.

By: Annie @ Credit Dispute

Annie @ Credit Dispute — Thu, 06 Aug 2009 03:58:19 +0000

I actually pay my credit card bills normally every salary(as I like it this way). And I don’t like touching my savings account to pay my bills. I tend to keep my savings and use it in case of some emergency.

By: Ashley

Ashley — Wed, 05 Aug 2009 21:38:11 +0000

Smart idea Joshua! The one problem I have with auto-payments is giving an institution permission to take money out of my account without approval each time. On more than one instance I’ve had companies take money out prior to the day that they were supposed to and some companies require at least 1 month notice to cancel an auto-payment. It’s great to know your bills are paid on time every time, but in the instance of a glitch, fighting to get your money back can be a hassle.

By: Eric

Eric — Wed, 05 Aug 2009 19:05:40 +0000

I don’t autopay my credit cards because the amount fluctuates every month. I do autopay my car loan and student loan though.

It is a good idea to use savings to pay, I had never thought of that before. Just be sure you don’t pay from your savings account too many times per month or your bank will convert it to a checking account.