Direct deposits are the saving grace of torn checks, excessive charging check cashing centers and closed banks everywhere. Instead of receiving a regular paycheck, your employer sends you a voucher of how much money was deposited into your account. All you need to set this up with your employer is a social security card, a voided personal check from your bank account, and the right enough sense to realize what’s good for you.
There are many benefits of Direct Deposit; here is a list of just a few, hopefully just enough to have you 2-steppin’ into your HR department’s office to set one up immediately:
- You know you have money in the bank without having to get out of your PJs and face the world. There are no checks to be cashed or long lines to be waiting on while whining to everyone on Twitter. The paycheck is issued whether you’re out of town, snowed in or just straight up lazy. Those of you preparing for yet another blanket of snow this week (ughhh), you’ll wish you had direct deposit if you have to hike through the snow this Friday to pick up that check in time for Super Bowl weekend.
- Bounced checks bounce out of your reality. Since the deposit is going directly into your account on an exact time, there leaves little room for bounced checks to occur.
- Direct deposits give you more control over where the fruits of your grind are going to go. If you have more than one bank account, you can manage how much money goes into which account easier. Managing multiple accounts is great for establishing the “out of sight, out of mind saving mentality.” Try setting up an interest earning online savings account like ING Direct to allocate some of your direct deposit wages into.
- There are no holes in your pocket. According to NACHA, The Electronic Payment Association, it is virtually impossible to have a direct deposit lost. You’re going to need to come up with an excuse to tell your landlord why your rent is a week late that isn’t a lost paycheck.
- There’s no reason to be mad at Labor Day, Independence Day, Boxing Day (Canada), or any other Holiday. Most employers, along with the federal government, issue direct deposits a day early if payday lands on a holiday.
In full disclosure, there is one “real” drawback to direct deposit, this one is for those with baby mama drama, tax evaders (yep, that’s you Wesley Snipes), or if your partner steals more of your “bread” than a pigeon in the park. If any of these speak to you and garnished wages or “missing” wages from a shared account is your reality, then you may want to stick with paper checks or even cash. Not that we’re talking to any of our audience though…
Even if you make very few cents, direct deposit simply makes much sense. Since you already take advantage of the technology that is right at your instantly gratified fingertips, ala “there’s an app for that,” whatever that is. Bring your money with you into the 21st century. For once, indulge your laziness. The only time you’ll ever need to go to the bank is if you’re passing “GO” and need to collect $200. U DEFINE SUCCESS