Direct Deposit: Safe, Simple, And Convenient

Posted June 1, 2023

There’s a very short list of things that really haven’t changed in the past 50 years. Despite technological advances, paper checks are one of them. 

Many employers have already moved to an all-electronic system for paying employees. Direct deposit transmits your paycheck from your employer’s business account directly into your checking, savings, or prepaid account(s). You still get a pay stub or an electronic equivalent from your employer that lists the amount of the transfer along with any deductions, like taxes, health care, or retirement.

With direct deposit, your payroll deposits clear instantaneously, which means your money is generally available in your account the same day, or even earlier. Because the electronic transfer of funds can have more visibility for financial institutions, once your payroll is processed funds could post to your account before the money is transferred. 

Let’s look deeper at three reasons why direct deposit could be right for you.

Safety

A paycheck is the largest check most people see on a regular basis, making it a tempting target for theft. With a direct deposit, those concerns are virtually nonexistent. There are no paper checks to keep safe, no one needs to pick up your paycheck for you, there’s no concern that someone else will accidentally be given your check, and the whole transaction is handled seamlessly by computer.

Simplicity

Believe it or not, the process of payroll is incredibly complicated for companies. One of the costs involved in payroll production is the printing of checks. Paper checks must be printed, signed, and recorded, all of which requires labor.

These savings may seem insignificant, but they add up quickly. Your employer spending less money on payroll means more money to pay you. Whether those cost savings result in a lower-priced product, more investment in the business, or higher wages, you benefit.

Convenience

Direct deposit can save you the weekly errand of fighting rush-hour traffic to the nearest ATM to get your paycheck deposited in time for same-day processing, or keeping track of your securely storing and disposing of paper checks after mobile deposit.

In addition, direct deposit can open a slew of digital possibilities. Easily automate your savings by depositing a portion of each payroll into a savings account and the rest into your checking, conveniently pay bills online, and potentially secure lower fees or a higher interest rate on your checking account!

Learn more about setting up direct deposit online. If you’re unsure about your options, our helpful representatives can get you the information you need to set up direct deposit. Call our Member Services Center or stop by one of our local branches today!

Categories: FinancialAdvice