Time is money and utilizing direct deposit can save you both! Direct deposit is a way to electronically transfer currency from one account to another. Employers often do it as a way to pay their employees and setting up the process is easy as pie. Employees will be required to fill out a quick form, provide a copy of a voided check (for the tracking numbers on the bottom) and within one or two pay cycles, your funds from your paycheck will magically appear in the account of your choice.
There are so many advantages to direct deposit that make this free employee benefit worthy of taking advantage of. With direct deposit you can directly benefit by:
- Having access to your money the day the check is issued. With a check you still need to go to the bank, manually deposit and maybe even wait a couple of days until the funds clear
- Financial institutions tend to favor clients with direct deposit (as it saves them time) from their employers and will even offer them financial incentives such as free or discount checking
- If payday lands on a federal holiday or a weekend, most employers will deposit your pay prior to the bank closings
- Consumers can benefit from being able to manage their personal finances more easily as your deposit schedule is consistent
Automatic bill payments, electronic bill payments and setting up an automatic transfer into your own savings accounts are all ways the direct deposit system can benefit you. By utilizing your banks online banking feature (which is often included per gratis) you can easily manage all your financial affairs. Bills can be paid in an orderly fashion resulting in higher credit scores for you plus you will save the cost of postage. Additionally, you can set up an automatic savings plan as small as $25 a paycheck that can build a sizable nest egg in a year’s time.
Taking advantage of the direct deposit features will help you save time and money. Why wait a moment longer, arrange this service with your employer immediately and take the time to set up all automatic bill pay online. In the long run, you will be happy that you did!