When you start a new job, you will always be asked to choose how you want to get paid. For years, employees picked up a paper paycheck each week and had to rush to the bank to cash it before the weekend. Fortunately, times have changed. Direct deposit makes payday a breeze.
How you get paid plays a huge role in your finances, such as helping you schedule bill payments or deciding how much money to put into your savings account. Continue reading to learn all the benefits of direct deposit, including how you could save money by enrolling.
It’s no secret that direct deposit is the most convenient way to receive your paycheck. Once you set it up, there’s nothing more you need to do. Each time your employer pays you, your paycheck will automatically appear in your bank account. Gone are the days of racing to the bank before it closes.
Direct deposit is the fastest way to get your money, period. There may be times when you are on vacation or are sick on payday. Instead of worrying about finding a way to pick up your check, you can simply log into your online account and check if the money has been deposited.
Before enrolling in direct deposit, check with your bank to determine if it charges any fees for using this feature. However, most financial institutions don’t have direct deposit fees – in fact, some even give you a bonus deposit just for opening an account.
And it’s not just you who benefits from direct deposit. Your employer will have an easier time managing the payroll because payments are fixed and regular.
Standard paychecks risk getting delayed, whether in the mail or by the employer. They are also susceptible to misplacement, further delaying the time it takes to get your money. Even when the check is deposited into your account, you might not see it immediately available.
If you’re looking for convenience and speed, direct deposit beats standard paychecks any day of the week. You can even determine whether you would like a portion of your paycheck to get deposited into a separate savings account, further helping you become a responsible spender.