Reasons to Have Direct Deposit
There are many reasons why people are choosing to have their paychecks directly deposited into their bank accounts. It saves you the hassle of having to run to the bank on your lunch break or stressing to get there before it closes, and according to a recent study it actually saves you money.
There seems to be no cons to having direct deposit. Many will receive their pay at midnight of the day they are paid, there is no waiting time for the check to clear and many companies offer for you to have your pay deposited into different accounts, meaning you are able to have a percentage put into your saving account and the remainder into your checking account.
Some wonder how it direct deposit saves you money rather than depositing you checks at the bank. There are three factors to look at when determining how much you could save by not having to deposit your check yourself. You need to see how much your time is valued at, which can be your hourly work wage, you'll need to see how many miles it takes you to travel to the bank, how long you wait in line at the bank, and the current price of gasoline.
The study showed a person whose time was valued at $15.00 an hour, spent 20 minutes driving, 5 minutes in line, plus the cost of gas on the trip, saved about $8.44. Over a year this can add up to over $70.00.
Many banks offer saving and specials to those who choose to have direct deposit. Another benefit is the privacy that it offers, and there is no worry that it will be delayed in the mail or accidentally get lost. Many understand the pros of having direct deposit and the IRS even offers direct deposit of tax returns.
Contributing National Payday Staff Writer
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