What are the Benefits of Direct Deposit?
Checks have been used for a long time by many employers in paying employees their salaries. Although very few employers have tried using direct deposit, there are many benefits that come along with direct deposit as compared to the use of checks. Direct deposit is where the salary of a particular employee is directly deposited into their bank account instead of writing them a check that they have to cash with their bank before using their money. The following are some of the main ways you will benefit from direct deposit:
No Check Problems
The use of checks is often linked to quite a number of problems. First and foremost there is the problem of a check bouncing back. This usually forces the employer to write another check leading to more damaged checks for him or her and to the employee, more time is wasted in getting access to their money. Moreover checks are prone to getting lost. Its easy to forget your check in the pocket when taking your clothes to the laundry or even dropping it somewhere unknowingly equally forcing you to go back to your employer with some explanations of course before you can get another check. Such hassles can easily be avoided by simply using direct deposit.
Reduced bank trips
When given a check, the money will not have reached your account until you cash the check in your bank. Keep in mind that at the bank you are likely to come across a long queue of other people who like you are also taking their checks to the bank due to the many organizations that are using checks for payment of salaries as well. Such lines are often not only tiresome but time consuming as well especially if you have a busy schedule. With direct deposit however, the money immediately gets into your account hence there is absolutely no need of visiting the bank.
Immediate Account Loading
You employer will have to play by a whole new set of rules with direct deposit in place for instance, if your payday lands on a holiday, he/she is required to make payment a day earlier so that you still have your salary payments in your bank account on your payday as required. You will only have to check and confirm that the amount has been deposited in to your account also the endless trips to your employer to get the check then to the bank to cash it will no longer be necessary as soon as you start using direct deposit.
The attractive factor with direct deposit is that it does not only benefit employees but it is also advantageous to employers. For instance employers can also write checks and lose them amounting to damage or simply misuse of checks. Nevertheless if your employee has lost the check, you will be the one to take the trouble of cancelling out that check and writing another one that will now be considered valid by their bank. This reconciliation process might be time consuming and is uncalled for; while on the other hand direct deposit is straightforward and so much faster. Consequently using direct deposit provides a win win situation for both employers and employees. Now you should have a better understanding on what are the benefits of direct deposit.