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Create envelopes to set your funds aside with QuickBooks Checking

by Intuit•35• Updated 4 months ago

Learn how to save money in envelopes and set it aside for future expenses and earn the Annual Percentage Yield (APY)1.

Need money for a rainy day? Want a way to set money aside for unexpected expenses? It's great when you can save for essential expenses like rent, taxes, and payroll. But keeping track of the money you’ve set aside alongside all your other business funds can be tricky.

Use envelopes2 to set aside cash for future expenses in QuickBooks Checking with QuickBooks Money or QuickBooks Online. Money placed in envelopes is intentionally separated from the money in your QuickBooks Checking account so you don't accidentally spend it. Envelopes let you save proactively so you have the money you need to run your business.

Step 1: Create an envelope

You can create envelopes for specific purposes or general savings.

QuickBooks Online can also save your Sales Tax liability for you in a Smart Sales Tax Envelope. Learn how to set up and use an automated Smart Sales Tax Envelope in QuickBooks Online. The Smart Sales Tax Envelope isn't currently available for QuickBooks Money.

  1. Select Lending & banking, then select QuickBooks Checking (Take me there).
  2. In the envelopes section, select Add new envelope. If you're creating an envelope for the first time, there are a few extra setup steps.
  3. Select an option to tell QuickBooks what you're saving for. If you don't have a specific goal in mind, select Rainy Day Fund or Something else. Then select Next.
  4. Give your envelope a name.
    1. (Optional) Enter the amount you want to save.
    2. (Optional) Enter a target date to meet your savings goal.
  5. Select Create.
  1. Select Banking, then Add Envelope.
  2. Select Let's do this or Next on a mobile device.
  3. Select an option to tell QuickBooks what you're saving for. If you don't have a specific goal in mind, select Rainy Day Fund or Something else. Then select Next.
  4. Give your envelope a name.
  5. Enter the amount you want to save.
    1. (Optional) Enter a target date to meet your savings goal.
  6. Select Create.

Step 2: Move money in or out of an envelope

After you create an envelope, you can move money from your QuickBooks Checking to your new envelope. You can always move money later on, but money needs to be in your QuickBooks Checking account before you can put it in an envelope.

Put money in an envelope

You can add money from your QuickBooks Checking account to an envelope instantly. You can also add money from an outside account. The money is moved via an ACH Transfer and takes 3 to 5 business days. First, the money is added to your QuickBooks Checking account then it’s automatically added to your envelope.

  1. Select Lending & banking, then select QuickBooks Checking (Take me there).
  2. Select the Envelopes section, then select the envelope you want to put money into.
  3. Select Add money, and then select Transfer money.
  4. In the From field, select your QuickBooks Checking account. You can also select one of your connected bank accounts. Enter the amount you want to put into the envelope.
  5. Make sure the correct envelope is selected in To.
  6. Enter the amount you want to put into the envelope and then select Next.
  7. Select Continue when the transfer request finishes.
  1. Select Banking, then the envelope you want to add money to.
  2. Select Transfer money, then Transfer in.
  3. Enter the amount you want to add in Amount.
  4. Select the account to add money from in From.
  5. Make sure the correct envelope is selected in To then select Next.
  6. Select Finish transfer, then Done when the transfer finishes.
    1. In QuickBooks Money Mobile, select Continue when the transfer finishes.

QuickBooks can save your Sales Tax liability for you. Learn how to set up and use an automated Smart Sales Tax Envelope. Smart Sales Tax Envelopes aren't currently available in QuickBooks Money.

Take money out of an envelope

When you're ready to use money in an envelope, you need to transfer it to your QuickBooks Checking account first.

  1. Select Lending & banking, then select QuickBooks Checking (Take me there).
  2. In the Envelopes section, select the envelope you want to take money out of.
  3. Select Send money and enter the amount you want to take out of your envelope.
  4. Make sure the correct envelope is selected in From.
  5. In the To field, select your QuickBooks Checking account.
  6. Enter the amount you want to take out of your envelope, select Next, then select Done when the transfer request finishes.
  1. Select Banking, then the envelope you want to take money out of.
  2. Select Transfer money, then Transfer out.
  3. Enter the amount you want to take out in Amount.
  4. Select QuickBooks Checking in From.
  5. Make sure the correct envelope is selected in From then select Next.
  6. Select Finish transfer, then Done when the transfer finishes.
    1. In QuickBooks Money Mobile, select Continue when the transfer finishes.

Now your money is back in your QuickBooks Checking account. You can use it to pay for your goal, move it to a connected account, or put it in another envelope.

Step 3: Manage your envelopes

You can select an envelope in the Envelopes section to

  • See all of the money you've moved in and out of an envelope.
  • Update the name, amount, or target date.

You'll see your transfers and interest paid in the Recent Activity section. If you want to change your goal or target date:

  1. Open an envelope.
  2. Select Edit envelope.
  3. Make your edits to the Name, Goal, or Target.
  4. When you're done, select Save.

Disclaimer: QuickBooks Payments account subject to eligibility criteria, credit and application approval. Money movement services are provided by Intuit Payments Inc., licensed as a Money Transmitter by the New York State Department of Financial Services.

1Annual percentage yield: The annual percentage yield (APY) is the rate used to calculate how much interest you earn on money in your QuickBooks Checking envelopes. The APY for QuickBooks Checking is a “compounded interest” rate. That means you earn interest on the money you put into your QuickBooks Checking envelopes, and on interest the bank pays you.

APY is accurate as of July 31, 2023, and may change at our discretion at any time. The listed APY will be paid on the average daily available balances distributed across your created envelopes within your primary QuickBooks Checking account. Balances held outside an envelope won’t earn interest. See the Deposit Account Agreement for terms and conditions.

To find the current rate for your envelope balances:

  1. Go to Lending & banking, then select QuickBooks Checking (Take me there).
  2. Select Manage.
  3. If you're on a web browser, look for the Your Benefits section. Or select View info if you're on a mobile device.
  1. Tap Banking on the homepage.
  2. Review the Benefits section.

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2Envelopes: You can create up to 9 Envelopes within your primary QuickBooks Checking account. Money in Envelopes must be moved to the available balance in your primary QuickBooks Checking account before it can be used. Envelopes within your primary QuickBooks Checking account will automatically earn interest once created. At the close of each statement cycle, the interest earned on funds in your Envelopes will be credited to each Envelope in proportion to the average daily balance of each Envelope.

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