Back in the “dark ages” (in the 1990s!) employers used paper checks to pay their staff. Some of you might even remember receiving a blue perforated check in an envelope, complete with a pay stub to review your wages.
Some employers still prefer the check route but, in today’s digital landscape, more and more companies are opting to pay their employees digitally via direct deposit. If you’re not familiar with this method, read on and learn about why direct deposit might be right for you.
What is direct deposit?
Simply put, direct deposit is an electronic payment method that lets your payment provider (e.g. employer, government entity) transfer funds directly to your bank account. You can receive paychecks, government benefits and tax refunds all without the need for paper checks.
Why choose direct deposit over paper checks?
- Security: Direct deposit is also safer. By reducing the amount of checks and cash floating around, you’re less at risk of losing your funds or them being stolen. Plus, if you use strong passphrases and adhere to safe online banking practices, you double down on your ability to stay secure.
- Convenience: This might be one of the biggest reasons why people prefer direct deposit. Funds go directly to your account(s), thus eliminating the need to physically go to a bank during business hours or deposit a paper check via ATM or mobile.
Plus, when you direct deposit, you will often have the option to allocate full or partial payments to one or multiple accounts. This can streamline your savings goals if you elect a portion to go into a High-Yield Savings Account or other deposit product.
- EarlyPay: What’s better than getting paid? Getting paid early! Many financial institutions like Sharonview feature early access to paychecks. With Sharonview’s EarlyPay you can get paid up to two days early to your Sharonview deposit product! Please note that this feature is only applicable to Sharonview accounts—if you allocate funds to go to a different institution, you will receive those on the expected day.
- Reliability: As long as everything goes smoothly on your payment provider’s end, you’ll find that direct deposit payments arrive on time, when expected. That consistency can be a game changer for those who schedule payments or otherwise rely on their paychecks to get through the week. Without the guessing game, you’re free to carry on with confidence.
- Better for the environment: According to 8 Billion Trees, the average person “consumes” paper products that equate to 3.6 trees annually. While that doesn’t sound like a lot, it amounts to nearly 30 billion trees each year. Why waste paper on something you’ll end up throwing away?
There you have it! Five excellent reasons to get paid via direct deposit.
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