Benefits of Direct Deposit
Everyone loves payday, but what makes it even better? Waking up to the cash already in your account (thank you, direct deposit). Also known as an automatic clearing house transaction (ACH), direct deposit offers many advantages, including faster access to cash, increased security, and less time spent in a branch or ATM. If you’re still receiving paper checks from your employer, it may be time to consider direct deposit.
What Are the Benefits of Direct Deposit?
Along with standard paychecks, direct deposit can be used to receive Social Security payments, child support or alimony, investment dividends, and more. Let’s talk about the benefits.
Timely access to funds
Forget about waiting to pick up your check, and then making a trip to the credit union to deposit it. With direct deposit, your check will be deposited into your account on payday, and you’ll be able to access the funds immediately.
Enhanced security
There’s no need to worry about lost or stolen checks since the funds are put directly into your account. It also keeps your payment information confidential since you won’t have to carry around the paper check or deposit it at your financial institution. This not only protects your financial data but also safeguards your employer’s account information.
Better money management
Direct deposit makes it much easier to stick to a budget. You can have monthly expenses, such as your electricity or water bill, deducted immediately after your paycheck reaches your checking account. Timely payment of bills will also support your credit score and overall credit history.
Helps save money
With direct deposit, you can have money automatically transferred to your savings account with each paycheck. You won’t have to remember to transfer the money yourself, so the savings will add up without lifting a finger.
It’s convenient
If you are traveling or unable to make it to your workplace, you won’t have to wait to pick up your paycheck or receive it in the mail, as the funds will automatically make it into your account on the designated payday.
How to Set Up Direct Deposit
- Sign into ClickSwitch
- Select Switch Direct Deposits
- Use Switch Assist to select your employer from the dropdown menu, or select the option to enter your direct deposit details