Most people are familiar with the idea of direct deposit. You fill out a little form with your employer, perhaps attach a voided check, and a few weeks later, your paycheck stops coming in the mail and begins showing up directly in your account. It’s a simple little idea, but it has a lot of benefits that you should keep in mind when deciding how to receive your paychecks.
First, and most important to many people, direct deposit is fast. Most companies do all their payroll at one time, issuing all the checks the same day. With direct deposit, that means your money enters your account the next business day, while with paper checks, the check arrives whenever the mail can get it there. Combining direct deposit with online banking means that you have instantaneous access to your money, without ever having to go to the Credit Union.
Second, direct deposit cuts down on the use of paper and physical transportation in getting your check to you. This is environmentally friendly, and that’s great, but it has other advantages, too. If you’ve ever had a check get lost in the mail, you know how frustrating and time consuming it is to try and trace its progress, all the while wondering when you’re going to get paid. Moreover, a huge component of identity theft involves thieves who get access to your banking information by getting into your mail or by digging through your trash. Direct deposit cuts down drastically on those theft opportunities.
Once you have direct deposit set up and working, you’re well on the way to getting better control of your financial future!