Sometimes we don't realize how much simple activities really cost us. Take the example of direct depositing your paycheck. One would assume that the difference between depositing your paycheck yourself and having it directly deposited into your bank would be minimal - maybe a $1.00 at most. The fact is that the actual cost of depositing a paycheck rather than having it directly deposited is more than 5 times that number.
According to a study conducted for NACHA (the electronic payments association) by Tinucci & Associates, the total direct and indirect costs of depositing a check yourself instead of using direct deposit is a whopping $5.88. That means that if you get paid every other week, it costs you more than $70 a year to deposit your own paycheck rather than having it directly deposited.
In addition to saving you money over making the deposit yourself, direct deposit can also save you on banking fees. Many banks offer incentives for you to have your paychecks directly deposited often waiving minimum balances for free checking. Simply ask your bank what incentives they offer when applying for it.
Direct deposit also gives you better control over your finances. You can decide exactly how you want to divide your money among your different accounts and what amount is to be placed into long term savings accounts. This makes paying yourself first, which many financial advisors recommend, much easier than trying to sort it all out every time you deposit your paycheck yourself.
Having direct deposit can help to avoid accidental but costly mistakes. When you have your paychecks directly deposited you know that they will be in your bank no matter what emergencies arrive in your personal life or if you happen to be out of town. If you deposit your paycheck yourself, there are certain times when you may be delayed in making the deposit. This can mean that you don't have money in your accounts that you thought you'd have which can trigger expensive banking fees.
Another benefit of direct deposit is that it's more confidential than depositing your paycheck yourself. When you deposit a check yourself, 3 to 9 people at the bank will handle it. With a direct deposit, that number is usually reduced to one person, and two people at the most. This gives direct deposit much more security and control to your money than when you deposit your paycheck yourself.
Direct deposit can give you peace of mind. It will often make your money available to you sooner than if you deposit your paycheck yourself and there is no worry that it will be delayed in the mail or accidentally get lost. With direct deposit, there is no need to wait up to a week for your check to clear. It also gives you an indisputable record that your paycheck has been deposited. If a problem arises, it is between the company and the bank and no fault can be placed upon you.
Since your paycheck is directly deposited, there is a huge decrease in the chance of financial crime occurring against you and your money. Nobody can take your check out of your mailbox or out of your wallet.
Having direct deposit can also save you a large amount of money on your IRS tax refund. Having direct deposit in place allows the IRS to get you your refund to you much quicker than if you don't have direct deposit and can save you hundreds of dollars by avoiding
tax refund aniticipation loans.
Save Money With Direct Deposit
