Years ago, the idea of ”direct deposit” was viewed with considerable suspicion. Employees thought their companies were benefiting in some way from this service. Some of them thought that they were not in control of their money, and many felt that the system would somehow collapse, and that they would run out of funds when expected, and that they would not have a “real” check to show that they did have the money. money. next. Times have certainly changed! Now it is a rarity not to have direct deposit services available to you. And more and more employees are realizing the considerable benefits direct deposit can offer.
When you receive a “paper” paycheck, you should take it to your credit union for deposit or cash. Depending on when you can make the necessary arrangements to physically deliver the check to the credit union, there may be several days of delay before the funds are deposited into your account. Not so with direct deposit. The funds are available in your account immediately after deposit and there is no delay in accessing them. Many companies have their headquarters or payroll departments in a central location. In the event of inclement weather, poor road conditions, or even a transport strike, physical checks could be delayed for several days. Again, weather and other conditions will not interfere with pay for employees who are paid through direct deposit.
Another concern with paper checks has to do with theft. Would you believe that millions of Social Security and government checks of one kind or another are stolen, delayed, or misdirected each year? Compare that to the 39 million Social Security checks directly deposited each year. It may be hard to believe, but NONE of these checks have been lost. Some people worry about not knowing whether or not the correct amount has been deposited. They may not be aware that earnings statements are sent to those who receive their checks by direct deposit. You then receive the information about what has been deposited. You just don’t have to worry about making the physical deposit yourself.
There are more reasons to consider direct deposit if you are not using it today. If you can be sure that your funds are deposited at the earliest possible time available, as they are direct deposit, then your money is working for you at the earliest possible time. Most credit unions have the ability to split your check and deposit part into your regular checking account and part into various savings or investment instruments. And the faster the deposits are made, the sooner you will make money from them, right? Just another reason to convert to direct deposit.
Did you know that your credit union can even arrange for direct deposit of your income tax refund? Well, it can. Simply fill in your credit union’s 9-digit “routing number” in the appropriate place when filing your return, as well as your individual credit union account number. The routing number identifies your credit union. The account number identifies your own account within the credit union. Another reason to take this “route” with your tax return has to do with the time frame, as well as your paychecks. It takes 6 weeks or more to receive your “traditional” refund check. Using the direct deposit option offered by the IRS can significantly shorten the wait. Some taxpayers report receiving their directly deposited “electronic refunds” in as little as 3 weeks. Is your money. Wouldn’t you like to access it as soon as possible?
Now let’s talk about some other benefits of direct deposit. Have you ever heard “pay yourself first”? Well, with direct deposit, you can designate multiple places to “send” your money on payday. And if you don’t have physical possession of that money, you’re much less likely to spend it, frankly. If you’re in a savings account, or even paying off debt, you may be less tempted to spend it on other distractions. What kinds of debts can you address in this way? Well, you can allocate part of your directly deposited check to pay off your car loan, your mortgage, or even your child support commitment each month.
Would it surprise you to learn that more than 96% of credit union members have access to direct deposit? Well, it shouldn’t. Your credit union is here to serve you. You just need to stop by your credit union branch to set up direct deposit. It is another excellent service offered by your credit union.