We have all filled out new employment applications and debated which payroll option to choose: direct deposit, or checks in the mail. How and when we receive our paychecks dictates so much of our lives, like when we should schedule our bill payments, or how we should set aside money for our savings accounts.
The age-old question of which payroll option is better has been around for a long time and some still are not convinced as to which is the best option. However, the slides below will discuss the benefits of receiving direct deposit, and how you can save money just by opening an account.
Nothing will beat the convenience of having your money directly deposited into your bank account whenever you are paid by your employer. There is no need to go out of your way to deposit your paycheck at your bank or hunt down the ATM closest to you.
Direct deposit comes with no extra steps and no hassle on the part of an employee. If you want your money faster, there is no doubt that direct deposit outshines traditional check payments. However, be sure to check that there are no fees associated with your direct deposit. Even though this is now rare, some banks still charge additional fees for direct deposit.
Direct deposit even makes it easier for employers to keep track of payroll and keep their books balanced and up to date because there is no delay in payment.
If you were to receive a check instead, the money may not be available in your account for a few days, which could delay important bill payments, and unbalance books in the case of the employer.
Paychecks are not the only type of payment you can receive through direct deposit. For example, you can get your government stimulus checks or tax refunds from the IRS through direct deposit, and experience the money-saving and time-saving benefits.
To get your stimulus payment and tax refund faster, all you have to do is make sure the IRS has your bank account’s routing number and account number on file.
When it comes to convenience and getting your money faster, checks cannot compete with the ease of direct deposit. Not only do you get your money instantly, but you can even set up your direct deposit to go directly into your savings account or for only a portion to go into your savings account if you are enrolled in a savings or retirement program.
Direct deposit allows for a more streamline payment process and gives you the security of knowing your money will be in your account exactly when you need it to be.