Many employees throughout the country opt for direct deposit, and for good reason since there are many advantages. A majority of credit unions and banks offer direct deposits to customers as long as they have active checking accounts.
Direct deposit can be used to get standard paychecks, along with pension checks, unemployment benefits, Social Security payments, travel reimbursement, and more.
Direct Deposit Is Convenient
When you get a direct deposit, you won’t have to worry about losing a paper check. Direct deposit will just go right ahead and place the available funds in your checking account already. If you do need access to a paper copy of your check, then you can log into your account and view or print, just like other financial transactions. Electronic deposits will help make sure you get paid on time, even if you aren’t in your office to accept a check. This means you still get paid if you work remotely, take a sick day, or are out of town when payday comes around. If payday is on a holiday, or weekend, then funds are usually available the next business day.
You Save Valuable Time
You no longer have to wait to pick up your physical paycheck or wait in line to make a deposit. In order to make sure you get paid, all you have to do is log into your online account and check that the funds are available. You don’t have to wait to spend your money and you will get access to your money immediately.
It’s More Secure
Direct deposit gives you more security than you get with a physical check. There is zero risk of a digital check being stolen, forgotten, or lost when you automatically get it. This will protect your financial data and also be a safeguard for your employer’s account information. Checks won’t get delayed or damaged in the mail.
It’s a Better Way to Budget
Direct deposit can make it much easier to stick to your budget. You can set up your monthly expenses, such as your utilities, student loan payment, or rent, so they are deducted immediately after your check reaches your account. You are even able to have funds moved into your savings account each time you get your check deposited so it can be less tempting to spend money if you are trying to save up. You may also be able to save on monthly maintenance fees if you use direct deposit.
Your Money Is Protected and Safe
Once the money reaches your bank account it’s guaranteed by the Federal Deposit Insurance Corporation. This is a U.S. government agency that will insure money that is in banks. You also don’t ever have to worry about checks being lost.
There are also benefits to employers who get cost savings, better control over payroll expenses, timely payment, and reduced bookkeeping costs. Employees that are paid with live checks need to receive their paychecks by payday, but if there is a delay then they can easily wait for a pay stub when they already have their money direct deposited.