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Direct Deposit: Why should I have it?Mar 17 '01 (Updated Oct 27 '02) Write an essay on this topic.The Bottom Line It's quick, convenient and secure. If this electronic fund transfer method is available to you, take advantage of it. Direct Deposit is a safe and immediate way to electronically receive your paycheck in your bank account. If this option is available from your employer, I highly recommend that you take advantage of it. ”Why would I want Direct Deposit?” 1. It’s quicker. Instead of a paper check being printed, your paycheck is immediately deposited into you bank account. There is no paper check to collect. You don’t wait by the mailbox for your check to arrive. There’s no need for you to stand in line at the bank to cash or deposit your check. On payday, you paycheck is in your bank account, earning interest, not in your hand, waiting to get deposited. 2. It’s more secure. No paper check means no possibility of the check getting ‘lost in the mail.’ Robbery, merely unlikely with a paper check, is not possible with Direct Deposit. Direct Deposit is also more accurate; there is no chance for teller error when depositing your check (such as an incorrect account number or dollar amount). 3. You get your pay a day earlier. Speak with your employer about this. Some employers, if you are enrolled in Direct Deposit, will give you your money one business day earlier. When I was a federal employee, this was an additional benefit. If payday was Monday, I would have my money in my bank account on Friday morning. I had my money in the bank BEFORE the weekend started (or in my hand after an ATM visit). This also meant that my money was earning interest a day sooner (all of those pennies add up) 4. It’s cheaper. Not only does your employer save [an electronic transfer is MUCH cheaper than printing (and mailing), a paper check], so do you. Many banks offer a free checking account if you have Direct Deposit. Those that don’t will often offer a discount on the normal monthly fee. Check with your bank for specific details. ”How do I sign up for Direct Deposit?” Talk to your payroll department and fill out the proper forms. The information that you’ll need to provide them with is your account number and the routing number of your bank. If your money is going to a checking account, this information is pre-printed on the bottom of your checks; just bring a voided check with you. If your money will be going to a savings account, call your bank to get the routing number. Once the forms completed, your Direct Deposit should start within the next two pay periods (check with Payroll about this). ”Why WOULDN’T I want Direct Deposit?” If you must have that feeling of satisfaction when you hold your pay check in hand (hopefully with a large number followed by lots of zeros), then I wouldn’t sign up for Direct Deposit. If you also enjoy standing in a long line at the bank to deposit your check on pay day, I wouldn’t sign up for Direct Deposit. If you enjoy getting your check in the mail (or waiting to get your check in the mail), then I wouldn’t get Direct Deposit. If you have plenty of time during your otherwise busy schedule to go to the bank (when it’s open) on the weekdays, or on Saturday mornings, then I wouldn’t sign up for Direct Deposit. I think that Direct Deposit is fantastic. On paydays, I know that my money is in my account. I already know how much money I’m getting (my employer provides me with an itemized pay statement with showing wages, tax withholdings, etc.) I don’t have to stand in line at the bank (with everyone else on payday) to deposit my check; I can use that time to SPEND my money. Direct Deposit is how I currently receive my pay, and it’s also how my previous employer paid me. I get my income tax refund Direct Deposited into my account. For the pure convenience value alone, Direct Deposit is worth it.  |
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