When you open a checking account or change employers, sign up for direct deposit not just your paycheck but corporate reimbursements, government and retirement benefits, stock dividends and other recurring sources of funds. It’s easy: All you need is your financial institution’s routing number and your account number.
Here are nine reasons why you should use direct deposit:
It’s a time saver. You no longer have to sit in a drive-through lane or wait in a long bank lobby line to deposit your check. At work, you do not have to be present to collect your paycheck. You also do not have to use a phone app to take photos of both sides of your check as part of a mobile-deposit service.
It’s safer: Direct deposit reduces your risk of identity theft, a big problem in South Florida today. Upgraded Points said in May that Miami-Dade, Broward and Palm Beach counties had the highest rate of identity theft fraud among 56 large metro areas. With direct deposit, no one can steal your paycheck from your wallet or mailbox fake your identity and deposit your earnings in their account.
It's faster. Your money gets into your checking account sooner. It often takes less time for the electronic payment to clear than a check. Direct deposit is certainly quicker than receiving a dividend check through the mail, finding a day to deposit it in person, and then waiting for the check to clear.
It's more reliable. You are no longer dependent on the postal service delivering your check or your employer handing it to you at the office. Employers and stock-dividend distributors automate their payments so that they arrive on a regular schedule. If you’re a retiree who depends on Social Security, a pension or other funds to pay your bills, it’s vital to have the money there on time.
It's a money saver. A number of financial institutions reward account holders for signing up for direct deposit by waiving monthly fees and requirements for a minimum monthly balance. Some pay higher interest rates. Tropical Financial waives the monthly service fee on its Premium Checking account when you enroll in direct deposit.
It's good for the environment. Less paper and fewer envelopes equals less landfill. Depositing funds online rather than by driving to your financial institution reduces vehicle emissions.
It’s easier to track. When it comes time to reconcile your checkbook, you don’t have to hunt for pay stubs and match them to the monthly statement. At tax time, you no longer have to organize each deposit of wage, dividend and other earnings.
It's customizable. Know the saying, “Pay yourself first?” You can split the direct deposit. Depending on the financial institution, you can allocate part of your payment to your checking account and another part to a savings account. That can help you set aside money for a vacation, new car, or a downpayment on a new home.
It's convenient. If you don’t live or work near a branch, you no longer have to drive anywhere deposit. That’s a real benefit for the growing number of people who are working remotely.
Learn more about direct deposit and Tropical Financial’s checking, savings and online banking services here.
