What Are the Benefits of Direct Deposit?
When it comes to getting paid, many people receive payments, like paychecks, Social Security payments, or pensions, through direct deposit.
What is direct deposit?
A direct deposit is a transaction where your payment is electronically transferred to your bank account.
It’s more secure.
Having direct deposit is more secure than receiving a paper check. There’s no risk of losing the paper check or having it stolen, since the funds are put directly into your account. Direct deposit also keeps your payment information confidential since you won’t have to carry around the paper check or deposit it at your financial institution.
It saves time.
Forget about waiting to pick up your check, and then making a trip to the credit union to deposit it. With direct deposit, your check will be deposited into your account on payday and you’ll be able to access the funds immediately.
It can help you save.
Direct deposit allows you to split your check into more than one account. With direct deposit, you can have money automatically transferred to your savings account or retirement account with each paycheck. You won’t have to remember to transfer the money yourself, so the savings will add up and you won’t have to lift a finger.
It’s predictable.
Your funds are typically deposited at the same time each pay period, so you know when to expect your paycheck to be available. Knowing when the funds hit your account allows you to pay your bills based on when you get paid and avoid fees.
Setting up direct deposit is as easy as completing a form with your account information. Once you set up direct deposit, you’ll be set. Your checks will be automatically deposited into your account each payday, and you’ll have access to your funds immediately.