CashWizard

Managing personal finances can feel like a juggling act—bills, daily expenses, and savings goals all competing for attention. What if you could simplify it all and put parts of your money management on autopilot? A secondary checking account dedicated to fixed recurring bills is a powerful way to do that. At CashWizard, we’re here to help you streamline your finances and save time, and this tactic is a perfect fit for our mission. In this post, we’ll dive into why a secondary checking account is ideal for expenses you can’t pay with a credit card, how to set it up with split direct deposit, and how CashWizard makes it even easier.

Primary vs. Secondary Checking Accounts: A Smart Division

Your primary checking account should be your hub for variable expenses—think paying credit card bills, ATM withdrawals, funding peer-to-peer payments (PayPal, Venmo, Zelle, etc), and the like. We believe anything you can pay with a credit card (groceries, dining out, or subscriptions like Netflix), you should, thanks to their rewards, consumer protections, and flexibility. Then those fluctuating costs get bundled into a monthly credit card bill, and you’ll always have a few weeks between when the bill is published (and you learn what you owe for your next payment) and when it’s actually due. Important caveat: this assumes you’re able to pay those credit card bills in full each month, to avoid the costly interest and other fees that result if you don’t! Meanwhile, a secondary checking account is perfect for fixed recurring bills—those predictable expenses that typically can’t be charged to a credit card, because the biller requires payment by ACH. By isolating these into their own account, you simplify your primary account’s activity and can automate the repayment of fixed bills using autopay with full peace of mind that you’ll have enough cash to do so. Determining which checking account should be primary versus secondary is entirely up to you and your personal preferences. Any full-featured checking account could serve as either, and it’s not a formal designation, just a description of how you choose to use each account. You could use two checking accounts at the same financial institution, or work with multiple banks.

Examples of Fixed Bills for Your Secondary Checking Account

What kinds of expenses fit this strategy? Here are some common ones that often require direct payment from a checking account:

Loans: Mortgage payments, student loans, auto loans, or personal loans with set monthly amounts.
Rent: A consistent cost for renters that rarely accepts credit cards.
Education or Childcare: Tuition, daycare, or after-school program fees are typically fixed and credit-card-unfriendly.
Insurance Premiums: Car, health, or renter’s insurance payments that don’t allow card payments.
Utilities: Certain bills like water, sewer, or HOA fees often demand direct bank payment. These are the targets of your secondary account strategy— predictable costs that benefit from automation. In many cases these are also the most important expenses in your life, and the things you likely want to prioritize paying over more discretionary spending.

Split Direct Deposit: Automate the Process

Setting this up is a breeze with split direct deposit. Most employers offer this feature, allowing you to divide your paycheck between accounts effortlessly. Here’s how:

Log Into Your Payroll Platform: Sign into your employer’s payroll system (e.g., ADP, Workday, Paychex, Gusto, or a similar platform) to adjust your direct deposit settings. If you’re unsure how, then reach out to your HR or payroll department for guidance.
Set Your Split: Decide what amount should go to your secondary account for fixed bills - the rest of your post-tax earnings will be deposited to your primary account, where you can use them for your variable expenses.
Let It Run: Once set, your paycheck splits automatically each pay period—no manual transfers needed. Pro tip: This tactic isn’t just for bills, and most payroll software supports setting numerous allocations. You could use split direct deposit to fund non-retirement investments (like a brokerage account) or a high-yield savings account. For investments, consider directing funds straight to the financial institution hosting them for even less hassle. Automating these contributions harnesses the power of compounding to build wealth with minimal effort.

How to Calculate Your Secondary Account Allocation

Figuring out how much to allocate to your secondary account is key. Here’s how to do it with CashWizard:

Track Your Fixed Bills: Use CashWizard’s bill creation feature to log all your fixed expenses. Our app is designed for cash flow planning, so you can see every mortgage payment, childcare cost, or utility bill in one place.
Total Them Up: Let CashWizard calculate the monthly sum—say, $1,800.
Divide by Pay Frequency: If you’re paid semi-monthly, that’s $1,800 ÷ 2 = $900 per paycheck. Note: if you’re paid bi-weekly, dividing by 2 is a safe way to go. Twice a year or so you’ll receive 3 paychecks in one calendar month, so a little extra will go into your secondary account.
Add a Buffer: Keep a minimum balance in your secondary account—maybe $500 if that’s the minimum to waive fees, or $1,000 if that’s your comfort zone. CashWizard will help you visualize the exact timing of your credits and debits in this account, which is particularly helpful as you switch over to this system to make sure you don’t overdraft or dip below the fee waiver balance minimum.

Why It Works: Autopilot and Clarity

The beauty of this approach? It puts your fixed bills on autopilot. Fund the account, set up direct deposit and autopay, and forget it—no more due-date stress. Plus, your primary account stays clean, allowing you to focus on handling variable expenses there. In CashWizard lingo, both your Primary and Secondary bank accounts are considered Operating Cash accounts, and CashWizard gives you great visibility to expected future cash flows in both. The difference is that the activity in your Secondary account will be extremely consistent, with the same pattern of credits (the direct deposit allocation from your paycheck) and debits (your fixed bills) repeating month to month. Your Primary bank account is the one that will experience more variability as your spending (and potentially income) fluctuates month to month, and for which CashWizard is especially helpful for getting ahead of any expected surpluses or deficits that require action.

Take Control with CashWizard

A Secondary Bank Account can simplify your finances, reduce stress, and free up mental bandwidth for what matters. Pair it with CashWizard, and you’ve got a winning combo. Our app tracks your primary account’s variable spending, manages your fixed bills, and helps you plan cash flow—all in one intuitive platform. Sign up today and see how easy money management can be.