Direct deposit is a convenient, simple way to receive income. Paychecks, tax refunds, child support payments, etc. can all be automatically deposited into a checking, savings, or prepaid debit card account. Typically it is free, and there are many benefits to this service.
For most people, receiving income as quickly as possible is not only a convenience, but a necessity. Direct deposit saves time and money by eliminating trips to the bank, and can save outrageous overdraft fees as well. With direct deposit transactions, funds are available immediately, often in the early morning. These funds can be used to pay bills online or off without having to wait for a check to clear. This allows bills to be paid more quickly, possibly saving late fees.
Another benefit to direct deposit is that it is paperless. The process of direct deposit (and direct debit) keeps unnecessary waste out of landfills, keeping the planet a little greener. Electronic transfers make it easier to do the right thing. Direct deposit is not only beneficial to you, but the planet as well.
Direct deposit is great for people who are financially responsible, as well as those who may not be. Direct debit works very well with direct deposit. This allows bill payments to be directly debited from an account, which if you have trouble paying bills, is a great way to pay them without actually physically handing the money over. It can be hard for some people to pay bills with cash or a check in hand because they actually watch that money leave; it can be a bit depressing. If direct debits are scheduled the same day as deposits, this eliminates that worry, and you are able to see how much is left over, eliminating the stress of having to do this manually. It can be very discouraging to pay each bill manually. Especially if it is a necessity, if it better left to automatic direct debit.
Direct deposit is fast, safe, effective, and very beneficial to most people’s financial situations. Even if you do not have a checking or savings account, there are many prepaid debit cards online that act as a pseudo checking account, allowing the benefits of direct deposit. One very prominent company is Account Now, which also works with a company that offers online payday loans that help build credit. This prepaid debit card account can be used as a substitution for a checking account or as an additional account, that is completely separate from a personal checking account and can be used for alternate purposes. Whatever the case, direct deposit offers many benefits and opens up many choices.