If you crave the security of a savings account but find that cash burns a hole in your pocket, the solution could involve a bit of sleight of hand. Automatically diverting funds from your paycheck to a savings account means you’ll be putting money away before you have the opportunity to spend it.
“Both because you don’t have to think about it and because (the pay redirected to savings) is out of sight and out of mind, it is probably a good idea for many people,” says George Loewenstein, professor of economics and psychology at Carnegie Mellon University.
Looking for another way to put your savings on autopilot? Try these ideas on for size.
Compare interest rates on savings accounts at Bankrate.com