Here's Why You Should Turn on Investment Auto-Deposits

September 18, 2019

Auto-Deposits help you start a positive habit of investing regularly, while also taking off the pressure of finding the "right time" to invest.

You asked, we answered: You can now make investing a habit by setting up Auto-Deposits, or regular deposits, to your COIN account. By regularly and automatically depositing money into your COIN investment account, you’ll be taking an important step toward building your financial future, while also making an ongoing positive impact on the causes you care about.

Let’s take a closer look at what Auto-Deposits are all about, and why they may be a smart investing strategy for you and your goals.

What’s an Auto-Deposit?

An Auto-Deposit is a regularly scheduled, automated deposit made to your COIN investment account. Think of it as a “set it and forget it” way to invest.

So, for example, if you set up an Auto-Deposit of $250 for the 15th of each month, that amount will be transferred from your linked bank account to your COIN investment account on that day each month, without you having to lift a finger.

Why Should I Set Up an Auto-Deposit?

Depositing regularly and automatically can help you in two ways:

1. It can help you start a positive habit of investing regularly

2. It can take off the pressure of finding the “right time” to invest

“It can be difficult to build new, positive habits, even when we know they’re good for us,” says COIN Co-Founder Abe Ahumada. “For investing and savings, there are emotional blocks that make us doubt our ability to set money aside, like thinking we don’t have enough money to invest or that investing is only for the ultra-wealthy.”

Auto-Deposit investing can help you get started with smaller amounts that are consistently invested, which you can adjust over time. This investment strategy also takes away the pressure of making a large lump-sum investment when you may not be ready to do so.

Setting up recurring investments can also help take away the guesswork about the “right” time to invest. Because here’s a spoiler: Time in the market is much more significant to your future account balances than market timing. Auto-Deposits help you build time in the market without having to worry about whether you’re investing at the right time.

Why is this important? Over time, the market will go up and down. But by investing regularly, you’ll buy at both highs and lows, which will even out and potentially lower your costs to buy stocks over the long term.

Here’s a snapshot of a year of investments with Auto-Deposits*:

 AUTO-DEPOSIT  Auto-Deposit  Account Balance
 Initial Deposit  $50  $50
 January  $250  $300.29
 February  $250  $552.04
 March  $250  $805.26
 April  $250  $1,059.96
 May  $250  $1,316.14
 June  $250  $1,573.82
 July  $250  $1,833.00
 August  $250  $2,093.69
 September  $250  $2,355.91
 October  $250  $2,619.65
 November  $250  $2,884.93
 December  $250  $3,151.75
   Total Deposits  Account Balance
  $3,050 $3,151.75

*For illustrative purposes only. Calculations are based on a $50 initial deposit and an annual 7% return

The stock market changes frequently, but your regular investments buy whatever shares you can afford that month, regardless of what they cost. Remember what we said about the power of time in the market. When you set up Auto-Deposits, you’re OK with the fact that on some months, when the market is low, you’ll be able to buy more stocks at lower prices, and that on other months, when the market is high, your money won’t go as far. The point is to make regular investments over a long period of time to better build your nest egg and work toward a future goal.

How Do I Set Up an Auto-Deposit in my COIN Account?

It’s easy to set up Auto-Deposits in your COIN account.

1. Log in to your dashboard and select Set Up an Auto-Deposit

2. Select the best day that works for your schedule

3. Choose the amount you’re comfortable investing on a regular basis

That's it!

Remember, every dollar invested counts toward your financial goals and supports the causes you care about.

“Getting conscious about your money doesn’t mean it has to be another chore on your to-do list,” says COIN CEO Megan Schleck. “By setting up Auto-Deposits, you create a habit of making an impact.”

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