Most people set up direct deposit on their first day at a new job and never think about it again. The form asks for a routing number and an account number, you hand over your checking account details, and that’s that on that.
This decision does more work than it gets credit for, though. Where your pay lands affects what happens to it, so a small change to your direct deposit setup can make saving your default instead of a second stop for your paycheck.
Can your paycheck go straight into a savings account?
In most cases, yes. Direct deposit is an ACH transfer, the same network banks and credit unions use to move money between accounts.¹ Any account with a routing number and an account number that accepts ACH deposits can usually receive one, and that includes most savings accounts.²
The catch is that not every employer or savings account handles pay the same way. Some payroll systems limit how many accounts you can direct your check to², and some savings accounts are set up to receive money only from a linked account. Check with both sides before you change anything.
How a split deposit works
You don’t have to choose between checking and savings. Many employers let you split a paycheck across two or more accounts.
The setup usually happens in your payroll portal or on a direct deposit form from HR. You’ll need three details for each account: the routing number, the account number, and whether it’s a checking or savings account³. Then you’ll typically choose one of two ways to divide your pay:
- A fixed amount. A set dollar figure, like $150 per paycheck, goes to savings and the rest goes to checking.
- A percentage. A share of each check, like 10%, goes to savings. The amount rises and falls with your pay.
A fixed amount is easier to plan around. A percentage keeps pace with raises and overtime without you having to update anything. Some people start with an amount small enough that it won’t affect their monthly bills, then raise it once the habit feels normal. Changes can take a pay cycle or two to go through,³ so keep an eye on your next couple of statements to confirm the money is landing where you expect.
Checking or savings: what each one is for
Checking and savings accounts do different jobs, which is why splitting tends to work better than picking one.
Checking is the account that lets your money move. Bills, debit card purchases, and automatic payments pull from it, so it needs consistent deposits to cover what’s going out. A checking account usually earns little or no interest, and that’s fine for money that’s leaving soon. Many people keep about a month of bills in checking, plus a small buffer for surprise expenses.
Savings is where money waits. It’s meant to hold a higher balance and, in a high-yield account, to earn a competitive return while it does. It’s usually less convenient to spend from, with no debit card attached and transfers that take a business day or two to go through.
When your whole paycheck lands in checking, saving depends on remembering to move money out before you spend it. When part of your check lands in savings, the decision to save is already made. You make the split once, when you set up your direct deposit, and it repeats every payday without any end-of-month willpower.
Where Mitten Savings fits
Mitten Savings is a digital high-yield savings account built for Michigan. It’s a tiered account, so your earning rate depends on your balance, with 4.01% APY at balances of $10,000 or more. There are no monthly maintenance fees, no minimum to open, and opening an account takes about five minutes.
And to help build up your savings over time, you can send part of each paycheck straight to your Mitten Savings account. Choose the amount or percentage you want to commit, and let the rest go to checking where it can cover your regular expenses.
Your paycheck is going to land somewhere either way. Choosing where it lands is one of the easiest ways to give your savings a head start.
Sources
¹Nacha, ACH Payments Fact Sheet
²Experian, Can You Direct Deposit Into a Savings Account? Jan. 9, 2026
³Experian, How to Split Your Direct Deposit Into Multiple Bank Accounts, June 22, 2022
*Annual Percentage Yield (APY) may change at any time. This is a variable-rate, tiered savings account. The APY you earn depends on your account balance and applies to the entire balance within the applicable tier: 0.05% APY for balances of $100 to $2,499.99, 3.01% APY for balances of $2,500 to $9,999.99, and 4.01% APY for balances of $10,000 or more. Rates effective as of 11/2/26.
Additional Information: Interest is calculated using the daily balance method, compounded monthly, and credited monthly. A minimum balance of $100 is required to earn dividends. Fees and transaction limits may apply and could reduce earnings. See the Account Agreement for complete terms and conditions.
Rate lock offer, published tiers, and rate subject to change at any time.