For decades, employees had to pick up a paper paycheck each payday and rush to the bank to cash it before it closed. Fortunately, times have changed, and setting up direct deposit saves you time and is more secure than a paper check. If you’re starting a new job, you’ll likely need to decide whether or not to get direct deposit. However, if your employer offers it, you can make the switch at any time and make paydays a breeze.
How you’re paid will play a significant role in your finances, including in your decision to set aside money in a savings account or whether or not to schedule automatic bill payments. Continue reading to learn your direct deposit options and the benefits of direct deposit.
Direct deposit is the fastest and most convenient way to receive your paycheck! Once you set it up, you’re good to go. If you get direct deposit with your bank, your paycheck will automatically be deposited into your account come payday.
That means you’ll never have to race to the bank to get there before it closes to deposit a paycheck again!
Because your pay is handled automatically, you’ll also never need to worry about getting your paycheck if you’re out sick or on vacation during a payday. Instead of stressing about finding time to pick up and deposit your check, you can simply log into your online banking account and check if your money has been deposited.
Direct deposit isn’t limited to employee paychecks either. Many government agencies have begun offering direct deposit options, too. For example, you can set up Social Security direct deposit, allowing you to receive your benefits more consistently and avoiding any unnecessary trips to the bank.
Plus, setting up direct deposit helps you save money, as you can request that a portion of your check is automatically deposited into your savings account.
You’re not the only one who benefits from direct deposit, either. Your employer actually benefits too. It’s easier to manage payroll when employees are signed up for direct deposit, which is one reason so many offer it, and more and more employers are offering a direct deposit prepaid card for employees who don’t have bank accounts.
Standard paper paychecks are also at-risk of getting delayed, whether by your employer or the mail. They’re also susceptible to misplacement and theft, which can further delay you from receiving your money.
Even when your check is deposited into your account, many banks don’t allow the full amount of funds to be available immediately. These are all concerns that direct deposit overcomes, so it’s a faster, easier, and more secure way to be paid.
So if you’re looking for a convenient, fast, and secure way to receive your paycheck or government benefits, direct deposit beats standard paper checks any day of the week. Plus, if you’re a person who’s constantly misplacing things, direct deposit can be incredible beneficial.
Gone are the days where you’ve had to scramble around your home looking for where you set your paycheck!