Setting a direct deposit is an excellent way to get your paychecks, government benefits, and refunds from any online retailers you work with. If you haven’t used this payment method before, it’s time to look at how it works and the benefits of setting up direct deposits.
Fast and free deposits
Deposits are available within minutes, so you don’t have to wait for a check to clear (and you won’t be charged an overdraft fee if the funds aren’t available). You can deposit checks, cash and even money orders into your checking or savings account. And since it’s 100% free of charge, there’s no reason not to take advantage of this service when it comes time to add money to your accounts. You can make deposits up to $2,500 per day and $5,000 per month without any fees.
Take control of your money
- Set up automatic bill payments, so you don’t have to worry about missing payments or to pay late fees.
- Avoid overdraft fees by setting your account to decline debit card transactions at the register if your checking balance is low.
- Save money on interest by transferring money from an interest-bearing account into a non-interest bearing one instead of leaving it idle and earning no return. Or consider opening up a high-yield savings account with a small balance to earn some interest on spare funds without having to deal with monthly maintenance fees (most require minimum balances).
- Avoid identity theft and fraud by setting up alerts for any unusual activity on your credit report; also, monitor all bank accounts regularly for suspicious activity.
Help pay bills on time
With direct deposit, you can pay bills quickly and easily. It’s also a convenient way to receive payments from your employer or government agencies.
Benefits of Direct Deposit
Direct deposit is convenient because it’s electronic, so there’s no need for paper checks or mailers. You can easily track payments in your account without keeping track of physical checks or envelopes. The money you receive through direct deposit is also safer than cash or credit cards because it reduces the risk of identity theft. As per SoFi, “Many employers allow you to personally change your direct deposit settings by inputting your account and routing numbers in their HR portal.”
Avoid identity theft and fraud
To avoid identity theft, setting up a direct deposit with your bank is best. When you transfer from a financial institution, the company that receives your money will ask for some information about you to verify that it’s actually coming from you. This means there are fewer opportunities for scammers who want to steal your account info or use it without permission.
There are a lot of benefits to setting up direct deposit. It’s easy and convenient and will save you time and money in the long run. Plus, some banks offer bonus for direct deposits up through them! If this sounds like something you want to do, then keep researching and find a suitable bank that offers you the best benefits.