Are you using direct deposit yet? If not, there’s virtually no reason not to make the switch. The term refers simply to your employer or other income source depositing your paycheck into your account. This is a very secure process and one that is being used by millions of people today. In fact, many people see direct deposit as one of their top money management tools. Your employer can usually help you to set it up within a few minutes and, once in place, you never have to think about depositing another paper check again.
Why Direct Deposit Your Next Paycheck?
There are several key benefits to using direct deposit over other types of depositing methods. First, consider how it works. It is a type of Automated Clearing House (ACH) transaction that is very safe and effective. The money is electronically directed from one account (usually your employer’s) into your checking or savings account. Take into consideration a few key benefits.
- For consumers, direct deposit is faster. You do not have to wait for your paper paycheck to arrive. Many employers set it up so that the funds arrive overnight into your account (once you are on a regular schedule). This means faster, more convenient access to your money. Usually your money is already in your account when you wake up in the morning!
- You can use direct deposit for nearly all types of deposits. This includes transactions from employers, investors, as well as from government agencies such as the Social Security Administration. Even pension plans can pay directly into your account.
- It offers a higher level of security as it eliminates possible check fraud. There’s no risk of someone stealing your paper paycheck when the funds are electronically deposited into your account.
- Your payment can’t get lost. Simply, it goes where it needs to go and it cannot transfer to the wrong account. That gives you peace of mind.
- There’s no need to wait in long lines at your financial institution on payday any longer. Imagine skipping that line every paycheck! And, that deposit happens no matter where you are or what you are doing. You can be on vacation and have your funds arrive in your account so you can use them right away.
From an employer’s standpoint (or government agency), direct deposit is more cost-effective than using traditional payroll checks. It can reduce the overall cost of money movement significantly.
How Do You Set Up Direct Deposit?
Today’s technology makes setting up your direct deposit simple. You will just need to provide your employer with basic information referencing your credit union account. Don’t worry – no one can take money from your account, only deposit it!
To help make enrolling in direct deposit even easier for our members, we’ve provided instructions and direct deposit forms with all the information you need.
Should you have any questions, stop by any branch location or give us a call at 813.264.4969 | 800.782.4899.
This article is for educational purposes only. Each individual’s financial situation is unique and readers are encouraged to contact the Credit Union when seeking financial advice on the products and services discussed.