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 Benefits of Direct Deposit
Direct Deposit is safe and confidential.
- Payments made by Direct Deposit have never been lost.
In fact, you are much more likely to have a problem with a check.
- Direct Deposit is more confidential. A check passes
through many more hands than an electronic transfer.
- Problems, which are rare, are quickly resolved. By
contrast, problems with checks may take much longer to correct, sometimes up to three
weeks.
Direct Deposit is convenient and
saves you time.
- By using Direct Deposit, you may save the equivalent
of three workdays each year by not having to go to the bank to deposit checks.
- You don't have to be in town for your money to be
securely deposited into your account. No more extra trips to the office to pick up
paychecks.
Direct Deposit is fast.
- Direct Deposit gives many people access to their
payments one to four days earlier than a check. There is no waiting for a check to clear.
- "Income tax refunds can be delivered to taxpayers
within days rather than months if the state uses electronic filing and Direct
Deposit." -- Associated Press, 10/27/2000
Direct Deposit helps you manage
your finances.
- Direct Deposit gives you control. Financial planners
recommend Direct Deposit as one step towards gaining control of your finances.
- Most employers will issue a payment stub that is
identical to what you receive with a traditional paycheck. It will show how much was
deposited into your account and how much was taken out for taxes, insurance and other
items.
Did You Know?
The most popular application of Direct Deposit is for
payroll, but it can also be used for many other types of payments, including:
- Annuities
- Bonuses and commissions
- Dividend and interest payments
- Pensions
- Travel expense settlements
- Vendor payments
Sources:
Direct Deposit and Direct Payment Coalition, www.directdeposit.org or www.directpayment.org
Board of Governors of the Federal Reserve System, www.federalreserve.gov
Mid-America Payment Exchange, www.mpx.org
NACHA, www.nacha.org
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