Direct Deposit is a convenient way to accept your paycheck. As we advance more and more towards a paperless society, waiting on line at a crowded bank to cash the fruits of our week’s labor is becoming an antiquated way of handling our money. Not only should you sign up for direct deposit at your job, you should fill out the direct deposit form as soon as you start your new job.This article will discuss the many benefits of receiving your paycheck via direct deposit and why you should sign up for direct deposit the first day on your new job.
Direct Deposit Takes Up To Two Weeks To Prenote At The Bank. My experience in payroll processing has taught me that when an employee signs up to have their paycheck direct deposited, it can take up to two weeks to prenote at the bank. This holding period ensures that all the information submitted on the direct deposit authorization form is correct and that the funds will be direct deposited correctly into the employee’s designated account. You will receive a paper check for at least one payroll period while the direct deposit request is being authorized at the bank. Any delay in filling out the direct deposit form will result in a longer waiting period to begin having your paycheck direct deposited.
Direct Deposit Makes It Easier To Schedule Direct Debits From Your Checking Account. If you frequently schedule your mortgage, utility or credit card payments electronically in advance, you can be confident that your payments will able to be debited on a specific date without an overdraft issue. If your paycheck is scheduled to be direct deposited on the 15th and the 30th of the month, those funds will be available on the morning of those dates. You can confidently schedule your bill payments to be made on those days without any concern.
Direct Deposit Reduces The Need For An Extra Errand During The Week. Who has time to make a weekly or biweekly trip to the local bank and then stand in a long line or use up gas waiting in the drive though lane at the bank? Have your check direct deposited and cut out this unnecessary waste of time and gas.
Many Banks Offer Perks For Having Your Paycheck Direct Deposited. Research what the banks in your area offer for having your paycheck direct deposited. Many banks offer free checking, no minimum balance requirement or some other benefit for simply having two checks direct deposited each month.
Direct Deposit Makes It Easier To Budget Your Money. Banks have different holding periods to allow funds to clear before making the money available for withdrawal. The complete amount of your paycheck is available as soon as your direct deposit hits your account. By making a traditional deposit at your bank, you may have to wait a day or two before the amount of your paycheck is available for withdrawal. My husband’s regular paycheck is direct deposited, but his Overtime checks are not. Even though he works for the state of New Jersey and the checks are supposed to be deposited as cash, many times at the teller’s discretion, they are not. We often have to wait up to two days for his Overtime checks to become available for withdrawal. By knowing exactly how much money is available for bill paying and other expenses, you can more effectively plan for your family’s needs.
Do not delay in signing up for Direct Deposit at your new job. Submit a voided check and your checking account information to your employer when filling out your new hire forms. You will be glad you did.
