Managing Your Everyday Finances: Direct Deposit

Save Time

If you like speedy service and convenience, then the direct deposit of your paycheck could be the right choice for you. This hassle-free service could mean no more standing in line at the bank or ATM to deposit your check and no worries if you're out of town or in bed with the flu on payday. Best of all, there should be no more hassles with lost or misplaced paychecks.

Easy Set Up

You can arrange direct deposit with your payroll department at work by filling out a simple form and providing a voided check so they have your bank routing and account numbers. The net amount of your pay (the amount after taxes and other deductions) will then be deposited electronically into your bank account each pay period, and you'll receive a pay stub either on paper or through online access.

Flexible Choices

What's more, you can even split and deposit your check into multiple accounts. Have you been thinking about starting a savings plan but couldn't seem to get started? Direct deposit allows you to put part of your pay into your checking account and part into your savings account, giving you the perfect opportunity to discipline yourself to put something away for a rainy day each pay period. The accounts that you send money to can be at different institutions and can be owned by persons other than you. This can come in handy if you want to send regular payments to a parent or to a child away at school. You can have either a percentage or a set amount sent to each different account. Another benefit is that you typically get your money one day sooner than you would with a paper check, because direct deposit paychecks are authorized earlier.

Is It Safe?

Worried about security? You shouldn't be. Identity theft often occurs because a thief obtained sensitive information from a paper check or bank statement. Your electronic deposit passes through fewer hands than a paper transaction would. Direct-deposited checks also post faster, giving you quick access to your money.