82% of U.S. workers were paid via direct deposit in 2016, according to NACHA. That’s an 8% rise from 2011. Direct deposit still continues to gain popularity, and 87% of users are happy with the service. For those who have yet to enroll, what are the benefits of direct deposit and why should you sign up for this free service?
Defining Direct Deposit
A direct deposit is an Automated Clearing House (ACH) transaction, where your payment is electronically transferred to your chosen bank account. This payment could be your paycheck, pension, social security payment, or even travel reimbursement. Almost all employers now offer the ability to enroll in direct deposit in lieu of taking a paper check.
7 Benefits of Direct Deposit
You don’t have to worry about losing a paper check before getting to the bank.
If you tend to misplace important documents, you can’t misplace a direct deposit! Plus, most employers will still provide you with a pay stub to review your paycheck details.
You don’t have to wait in line at your financial institution to deposit a paper check.
You can simply log on to your mobile banking app or online banking to see the direct deposit has been posted to your account.
You have access to the funds right away on payday.
You don’t have to wait until you physically pick up and deposit your paycheck.
You still receive your paycheck if you aren’t in the office.
You don’t have to worry about being behind your desk or visiting your office to receive your pay. You will still receive your direct deposit if you’re sick, on vacation, or even on a holiday.
You’re helping the environment.
Paper paychecks use more than 674 gallons of fuel per year! Direct deposit has a much greener footprint.
Direct deposit is a more secure form of payment.
Less people view your account information than when a paycheck is passed around. It’s a safe and confidential way to receive payment.
It’s easier to budget and save money with direct deposit.
You can request that a portion of your paycheck go into a savings account each time versus putting all of the funds into your checking account. This allows you to pay yourself first, a popular savings strategy recommended by experts.
How to Enroll in Direct Deposit
Direct deposit is a FREE service and easy to sign up for. You only need to fill out one or two forms to authorize your employer to electronically transfer funds into your chosen bank account.
At White Rose Credit Union, here’s how it works:
1) Complete and submit this Direct Deposit form to your employer.
The form will ask for your name, address, chosen account number, date, and signature. If you don’t know your checking account number you can look at the bottom of a check in your checkbook or ask a Member Service Representative. If you want to use a savings account, you’ll need to provide your member number instead of the checking account number.
Make sure you provide your employer with the correct account number and financial institution routing number. White Rose’s 9-digit routing number is 31387356.
2) Ask your employer if there are any forms they need filled out for their purposes. That’s it!
Once you use direct deposit, you’ll never want to go back to dealing with paper checks. What are the benefits of direct deposit? It’s the safest, easiest, and cheapest way to receive regular payments.
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