Direct deposit is an optional way to receive your payment directly in your bank account rather than having a paper check. Any type of payment can be direct deposited, from your paycheck to a Social Security payment to your tax refund. The transaction type is known as an ACH or automated clearing house transaction, and most employers offer it as a payment option, even in small businesses. Aside from being free for employees (or payees), direct deposit has additional benefits that you should consider.
One of the greatest things about direct deposit is that you get your money faster than you would with a paper check. You don’t have to wait for a check to be mailed to you or to go into the office on payday and pick it up. You also don’t have to wait in line at the bank to cash the check. The funds are often available in your account much earlier than you would be able to get to the bank, sometimes as early as just after midnight.
Did you know that estimates place the cost of printing and mailing checks at almost $10 per check?? It’s true, besides the cost of postage, envelopes, and checks, the time it takes to print the checks, stuff the envelopes, (reprint them as necessary) as well all add up.
Save the Trees
Paper checks are, well, paper, so they require resources to print. When you switch to direct deposit, you’re saving all of the paper and ink that it takes to print them, but also all of the water and fuel costs that are associated with the paper production. Direct deposit is a much greener choice, especially for frequent checks, like payroll!
Direct deposit gives you the option to split up your check. You can choose to have a portion of it deposited directly into a savings account so that you can build your savings. This is a tactic known as “paying yourself first,” and it is a good way to build savings if you have a hard time remembering not to spend everything in your checking account.
Save Yourself from Worry
Are you the type of person who constantly misplaces stuff? Or do you often find your neighbors’ mail mixed in with your own (and presumably they often receive yours)? Or are you often working from home or otherwise out of the office on payday? Direct deposit removes the worry from all of these situations. You won’t have to worry about other people handling your check at the office or it getting lost in the mail. There’s nothing to misplace or lose and the transfer is very safe and secure.
PL Consulting Can Help You Plan Your Budget!
PL Consulting offers a diverse range of bookkeeping and other financial services. Each of our services is customized to fit the needs of our client and his or her business plan. Our team can help you with each step of your business from organization, to budget, to financial maintenance. We are located in Pikesville at 119 Old Court Rd Baltimore, MD 21208. Contact us at 410.764.3731 or firstname.lastname@example.org so that we can assist you with your bookkeeping needs. Remember to stay up to date with everything PL Consulting by following us on our social media platforms via Facebook, Twitter, and Google+.