Did you know that setting up direct deposit can actually save you money? It’s true! Not only is direct deposit a safe and convenient way to get paid, but it can help you save money. One of the largest benefits of direct deposit is consistency, because you’re consistently paid around the same times each month.
Because direct deposit is so reliable and consistent, it makes it easier for you to set up automatic bill payments. Many bills, including things like insurance, cell phone contracts, and cable services, offer additional discounts or benefits if you’re enrolled in automatic payments. Since you’ll know exactly when you’ll be paid, taking advantage of these discounts and benefits is even easier.
Additionally, the consistency of direct deposit will let you more efficiently create a monthly budget, so you can schedule your bills when you know you’ll have money available to use. Since everything will get paid on time, you’ll be able to avoid late payment fees and increased interest fees that would otherwise put an unnecessary drain on your bank account.
Similarly, direct deposit also helps you avoid your bank account becoming overdrawn, resulting in costly overdraft fees.
Plus, when you initially get direct deposit, you’ll have the option of depositing a portion of your income into your savings account. Your savings account can then begin to accrue interest and you can save up for a big purchase, vacation, or other larger expense.
If you’re still on the fence about same day direct deposit, consider this. Many bank offer incentives for you to set up direct deposit with them.
For example, many banks agree to waive monthly maintenance or service fees if you have direct deposit. Those service fees can easily add up to more than $100 a year, so you save more money while reaping the many benefits of having direct deposit.
Of course, that isn’t always the case, and you should check with your bank to review their policy.
Additionally, if you are considering a direct deposit card or a prepaid debit card with direct deposit, we recommend checking all of the account details. Some of these cards charge a service fee, or only allow you to pull money from an ATM so often.
But in most case, having direct deposit helps you save more money, is more convenient, more consistent, and more secure than receiving and depositing paper checks.
All in all, direct deposit is the easiest and most reliable way to handle your paychecks and Social Security benefits.