Benefits of Direct Deposit
A direct deposit is an Automated Clearing House (ACH) transaction, where your payment is electronically transferred to your chosen bank account.
This payment could be your paycheck, pension, social security payment, or even travel reimbursement. Almost all employers now offer the ability to enroll in direct deposit.
Here are 7 benefits of direct deposit.
1. You don’t have to worry about losing a paper check
If you tend to misplace important documents, you can’t misplace a direct deposit! Plus, most employers will still provide you with a pay stub to review your paycheck details.
2. You don’t have to wait in line to deposit your check
You can simply log on to your mobile banking app or online banking to see if the direct deposit has been posted to your account.
3. Your money is instantly available on payday
You don’t have to wait until you physically pick up and deposit your paycheck.
4. You still receive your paycheck if you aren’t in the office
You don’t have to worry about being behind your desk or visiting your office to receive your pay. You will still receive your direct deposit if you’re sick or on vacation.
5. You’re helping the environment
Paper paychecks use more than 674 gallons of fuel per year! Direct deposit has a much greener footprint.
6. A more secure form of payment
Less people view your account information than when a paycheck is passed around. It’s a safe and confidential way to receive payment.
7. It’s easier to budget and save money
You can request that a portion of your paycheck go into a savings account each time versus putting all of the funds into your checking account. This allows you to pay yourself first, a popular savings strategy recommended by experts.
Once you use direct deposit, you’ll never want to go back to dealing with paper checks. Direct deposit is the safest, easiest, and cheapest way to receive regular payments.