Employers tend to offer multiple payment methods to their employees, the most popular of which is direct deposit. This is when your paycheck, social security payment, or pension is automatically transferred to your bank account on payday.
Nearly all employers these days provide this option in place of mailing or hand-delivering paper checks. In fact, as of 2016, 82 percent of American workers are paid by direct deposit, compared to 74 percent in 2011. If you haven’t signed up yet, here are the benefits of direct deposit you should consider.
- No possibility of misplacing the check: If you tend to misplace things, direct deposit is the ideal payment method. It’s impossible to lose something that’s added to your bank account automatically!
- No more lost or stolen mail: Direct deposit eliminates the chance of having your check lost or stolen in the mail. In fact, because of security and reliability issues, the US Department of Treasury has all but eliminated paper Social Security checks, requiring all new recipients to sign up for direct deposit or Direct Express cards instead.
- No need to wait in line to deposit a check: Most people get paid on Fridays, so banks and credit unions are extra busy that day as eager employees stop in to deposit their checks. With direct deposit, you can skip the line and simply log into your online account to ensure the payment went through.
- Immediate access to funds: Without the need to physically deposit your paycheck, the money is available immediately. There’s no delay between when your payment is deposited and when you can withdraw it.
- The payment still clears, even if you’re out of the office: On vacation, taking a personal holiday, or calling in sick on a Friday? It doesn’t matter if you’re not in the office on payday—your direct deposit will still go through.
- Paperless paychecks help the environment: There’s no need to print paper checks or send letters in the mail with direct deposit, making it a smarter choice for the environment.
- More secure payment option: Because your check isn’t sent in the mail or passed around the office on its way to your desk, there’s a smaller risk of your confidential banking information leaking out. This makes direct deposit the more secure way to get paid.
- Budget and save: Many employers offer the option to deposit a portion of your check directly into your savings account, helping you resist the temptation to spend when you really should save.
At GCS Credit Union, we make it easy to sign up for direct deposit from your employer. All you’re likely to need is your routing number (at GCS, this is 281076853) and your account number. Ask your employer if there are any other forms you need to fill out, and you’re all set! To learn more, or for help opening an account at GCS Credit Union, please call us at (618) 797-7993 today.