Direct deposit is a method of payment where an employer electronically transfers funds into the employee’s checking or savings account. It’s a popular practice because it is convenient, secure, and efficient.
If you’re not already set up for it, there are a number of reasons why you should choose direct deposit for your personal use.
- With Direct Deposit, you don’t have to go somewhere to physically cash or deposit your paycheck. This can be especially useful in situations where travel is limited, such as during inclement weather or public health emergencies.
- You don’t have to be ‘at work’ to get your paycheck. If you work remote, are ill, or on vacation, your deposit will still be made and readily accessible.
- We all lose things from time to time – that’s part of life. But have you ever misplaced a paycheck? It takes time and energy going through the process of getting a check re-issued. With direct deposit, there is no paper check to lose. It also removes the risk of a check getting damaged or lost in the mail.
- You can control where your money goes. For example, you can direct most of your funds to your checking account for bills, and also automatically direct a portion of it to a savings or emergency fund. It’s a great way to build a balance without much effort.
Contact your local American Federal office to learn more about getting direct deposit set up for your accounts.