7 Benefits of Direct Deposit

Direct deposit has saved many of us from the tedious task of waiting in line at the bank. Hallelujah! Not only does it save time but it is also a safe way to have your paycheck deposited directly into your bank or to a prepaid card.

Although widely adopted, there are still 20% of U.S. workers that do not receive direct deposit. Many employers highly encourage the use of direct deposit for good reason. It benefits the employee, business owner and person responsible for payroll— everyone saves time and you can streamline the process.

If you have employees hesitant to make the switch, here are seven helpful facts to share:

1. It's convenient. No more waiting in line at the bank or having to wait for a paycheck if you are out of the office.

2. It’s safe. A paper check can easily get lost, stolen, or damaged. Depositing the funds directly to a bank account prevents these issues from happening.

3. It’s fast. Your money is available the morning of payday. No more waiting for checks to be distributed.

4. It’s easier to manage your money. Typically, with direct deposit, you can have your money deposited into more than one account. This way you can apply a portion of your paycheck to your savings automatically.

5. It can save you money. A lot of financial institutes will waive maintenance fees if you use direct deposit.

6. You don’t need a bank account. Some employers offer direct deposit with payroll cards. These cards allow you to receive your paycheck directly to a card that can be used just like a debit card.

7. You can stop at any time. Direct deposit is not a commitment. If you change your mind you can always go back to receiving paper checks.