Nowadays, employers are utilizing direct deposits rather than mailing paychecks for their employees’ salaries. Not only is it cost-efficient for the company, it also greatly benefits the employees. Direct deposit means the money is transferred automatically to the employees’ bank accounts as soon as their employers put their salaries in.
In a survey done by NACHA in 2016, polling showed that 82% of employees are paid through direct deposit, with 87% of them satisfied with the service because of its safety and better money management. With direct deposits, people save time by avoiding the chore of visiting the bank or ATM just to deposit their pay. They don’t have to endure long lines and waiting times. This is definitely a plus for employees who do not have the luxury of free time.
What are the advantages of direct deposit?
First of all, employees have the upper hand in direct deposit because it makes it possible for them to get their pay early. It is faster than having paychecks delivered to their home. It is hassle-free and worry-free since it provides a safer way for people to get paid. There is no issue with the cost of depositing checks, since direct deposits are basically free. Second, it’s not just the employees that benefit from direct deposit. Companies save a lot of money by going paperless and don’t have the concern of potential lost paychecks. With direct deposits, check frauds can also be avoided. Lastly, having direct deposit can help with money management, as the money goes straight to the account. This can help with controlling spending and keeping finances under control.
Overall, this payroll system is win-win situation for both the employers and employees.
How to get paid early with direct deposit?
Direct deposit can only be utilized by employees who have bank accounts. If a person is newly-hired and doesn’t have one, he or she should open an account in order to receive their pay early through direct deposit. When everything has been set up successfully, employees can get their paychecks sent directly to their bank accounts, provided that the company supports this payroll system. If it does, an employee can arrange with the employer’s HR department by giving his bank account details. Then all an employee has to do is wait for their employers to distribute their pay and the money will automatically be transferred to their account.
Start getting that paycheck sent directly to bank account
Employees who are signed up for direct deposit have the advantage of getting their pay 2 days before the usual payday. One of the online banking systems that offers this option is Chime. Chime Account users can get their money 2 days earlier making it easier for them to handle their money effectively. When employers deposit the money, it will be automatically transferred to the employee’s bank account and Chime will send a notification, alerting the employee that his or her money is already received.
Don’t wait for that paycheck to get lost or stolen- sign up for direct deposit and get paid early.