One of the newer technologies I’ve come across is the smart deposit feature that some brokers have implemented which I’ve seen referred to as “smart deposit”. So what is “smart deposit” and how does it work?
From a technical perspective, it’s a script that runs a couple times a week or so and looks at your checking account balance and invests any amount over a certain threshold.
For example, you could set a smart deposit to invest any amount over $3500. So if you have $3200 in your checking account and then deposit $2000, your new balance would be $5200. The amount over $3,500 ( $1,700) would sweep into your investment account?
Why is this useful? Well for one it can automate your banking.
Who has a Smart Deposit Feature?
Betterment has Smart Deposit and you can read about it on their site here. M1 Finance, who I’m a fan of, doesn’t appear to have a smart deposit feature as of yet. However, you can invest with them for free and do old school manual deposits.
I should mention, that while I’ve been investing for more than 22 years and consider myself to be knowledgeable about the topic, I’m not an actual financial advisor so these are just ideas and you should consult with a financial advisor before investing any money.
I’m an affiliate of M1 Finance and may receive a commission on new account signups.