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Like doing things the hard way?Jun 13 '01 Write an essay on this topic.The Bottom Line It's very comforting to know I'll get paid on time and not even have to handle a check. It works for me, it will probably work for you. I admit it, I'm a lazy bum. Anything to make my life easier, I go for it, as long as it makes sense. For me, Direct Deposit is one of those things. Why One simple reason: Time By selecting Direct Deposit from my employer, I save myself a trip to the bank (or ATM) every two weeks. I get paid every other Friday, and on that Friday morning, it's in my bank account (sometimes it's even in the night before). It's nice to have my employer do something nice for me. But it's really in their interest to do that, as direct deposits tend to be cheaper to handle than physical checks, so it's a win-win for both of us. Speaking of interest, if you're a procrastinator like me, and wait a few days to deposit it, you might lose out on a few days of interest, since the money is still in the employer's account. By using direct deposit, it's in there, and you start earning interest (subject to the way your bank calculates interest, if any, of course). Why Not Some people choose not to take direct deposit when offered. The only real reason I can see is if there is a problem. On two occasions, I've not had the money in my account that Friday morning. These were due to bank errors, and the problem affected everyone, not just myself. Considering I've been having this done for the past 10 years, two screw-ups isn't bad. Oh, and the problems were rectified by late in the morning, and the money was there. But this is a good reason to not assume the money will be there...just in case. Always keep a money cushion, but this is good advice even without direct deposit. If there is a problem with the amount (someone screwed up and paid you less), then you might not find out about it for a little while...ie your own checks start bouncing (you DID remember to keep a cash cushion, right?). I tend to check my balance on the web that morning, or using the bank's automated phone system. As long as you do that, you can catch any mistakes, and inform your friendly payroll department that they forgot a digit or two. Some people apparently feel safer holding an actual check in their hands. I personally don't understand this, as I would feel it has a greater chance of getting lost. Why I have Direct Deposit As stated above...convenience. Why should I make a special trip to the bank? This saves me gas (especially now with high gas prices), and time (time depends on how far from the bank one is, and also if one uses an ATM or not). Paydays are usually more crowded at banks, so that would be a half hour out of my day. I also like it because I know it's in there. If I have a check in hand, unless I really need it in the bank to cover a bill, I'll probably procrastinate going. I also like that I'm gaining the interest from the start. A little here and there add up. It's definitely worth trying if you haven't already. If you wind up having problems (employer screwing up, or the bank making mistakes) then by all means, bail out of it. Some companies can handle it much better than others, so it's all up to your particular combination of banks and employer. Conclusion Times are getting faster, and people are getting busier. For me, this is one thing that can make my life just a little simpler.  |
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