These days, most employees enroll in direct deposit for their paychecks. This offers an electronic, immediate access to funds in your bank account. This takes away the hassle of depositing a check and waiting for the funds to clear.
In addition to these advantages, did you know direct deposit can also save you money? Here’s how.
CONVENIENCE AND AUTOMATION
Since you have immediate access to your money on payday, this can make direct deposit a highly attractive option for the workforce.
Pay bills through automatic withdrawals, which in some cases, offer deductions. Automatic withdrawals also benefit those of us who might forget to pay our bills, allowing you to save by avoiding late fees.
Also, if you rely on direct deposit, your money will always get to your checking account on time. This lowers the risk of accidental overdrafts.
SAVE TIME AND MONEY
Banks and credit unions often provide their customers with financial incentives to sign up for direct deposit, since direct deposit requires them to expend less labor to deposit your funds.
Since you don’t have to drive to your bank to deposit paper checks, you’re saving gas money and time.
According to a study done by Tinucci & Associates for NACHA, an electronic payment association, it can cost you an extra $5.88 to manually deposit your paycheck into your account versus through automated direct deposit.
For someone who is paid every two weeks, that is more than $70 of savings a year.
SPLIT FUNDS ACROSS ACCOUNTS
Direct deposits also offer a way for you to easily split your paycheck among multiple accounts.
For example, you can automatically deposit 80 percent of your paycheck into your checking account and 20 percent into your savings account.
Doing this allows you to better manage your finances and build your savings steadily without having to put too much thought into it. You’re saving money without much effort.
Interested in exploring accounts to link to your direct deposit? Contact us today.
Revised November 2022