6 Things You Should Put on Autopay

Here are six bills you should put on autopay:

Utility Bills

To ensure uninterrupted service and avoid late fees, electricity, natural gas, water, sewer, internet, and other utility bills can often be put on autopay.

Consider automatic payments of your utility bills to a credit card that offers cash back and rewards so you can be rewarded for paying bills that you must pay anyway. Be advised—some utility companies charge you a processing or convenience fee to pay your bill with a credit card, so make sure the credit card rewards outweigh the fees you pay.

Be sure to pay off the credit card each month to avoid interest charges. It's also a good idea to check your bills monthly to make sure all charges are what you were expecting—a high water bill, for example, could be a sign of a leak.

Credit Card Bills

Similar to utility bills, setting up autopay for your credit card means you don't have to worry about missing payment due dates or incurring late fees. You can choose to pay the full balance each month, a certain set amount, or just the minimum payment required. You can also make extra payments to your card throughout the month as you add new charges to it.

Even with autopay, you should still regularly check your transactions to ensure nothing fraudulent has happened to your card.

Car and Homeowners Insurance

Car and homeowners insurance is something you don't want to miss paying, since a lapse in coverage can be costly. Set up autopay for your auto and homeowners insurance so you don't have to worry about missing a payment or a break in coverage, even if you're sick or on vacation. And be sure to check with your insurance company—some offer a discount for autopay.

Retirement Contributions

With so many immediate bills staring you in the face, adding money to your savings may not be top of mind. But your future self will thank you when you make saving for retirement a priority, and autopay can help you do this automatically.

If you don't have the option of an automatic payroll contribution to a 401(k) through your employer, consider getting an Individual Retirement Account (IRA) and setting up automatic transfers from your checking account to your IRA every pay day. With compounded interest, even small contributions added regularly can really add up over time. You won't notice the money is gone, and you'll be building wealth for your future without having to think about it.

Mortgage or Rent

Many mortgage lenders and landlords will allow you to set up autopay.

Autopay might also work with rent payments. Some landlords and rental management companies charge 3%-5% of your monthly rent if your rent payment is late, which can seriously eat into your budget!

Check with your landlord to see if they accept credit card payments and autopay. If that's not an option, you can set up automatic bill payments directly from your Tower checking or savings account. That way, you can have peace of mind that your payment is on time each month.

Charitable Contributions

If giving to your favorite charity, church, or other non-profit is important to you, consider setting up autopay for your donations. You can set up autopay on your credit card (and earn rewards!) or set up automatic payments from your checking or savings account. You can rest easy knowing you're helping causes you to believe in on a regular basis, without adding something else that you have to remember to do. Be sure to keep a record of your donations for tax purposes.

Don't put vigilance on autopay

While putting recurring payments on autopay can help relieve stress over bill paying, it's important to keep track of your accounts and check them regularly for any signs of fraud or unusual charges.

Plus, since mistakes do happen, you'll want to check your autopay amounts to make sure they are correct. And, if you cancel a service or subscription, or decide to stop making donations to a certain charity, check that the autopay is no longer being taken from your account.

Lastly, be sure you plan so that you have enough money in your budget and account to cover your payments. One method is to jot down monthly autopay bills onto a desk calendar, as a visual reminder to make sure there are enough funds in your account to cover them as they come due. It's also a good idea to leave a buffer in your main account to avoid overdraft fees or returned payments.