According to one survey, almost 94% of employees in the U.S. receive their paychecks via direct deposit, the transfer of a payment or check directly into a recipient’s account. Also known as an automatic clearing house transaction (ACH), direct deposit offers many advantages, including faster access to cash, increased security, and less time spent visiting one’s local bank or the nearest ATM.
A majority of banks and credit unions, including Texas Tech Credit Union, offer direct deposit to customers and members as long as they hold active checking accounts. Along with standard paychecks, direct deposit can be used to receive Social Security payments, pension checks, travel reimbursement, unemployment benefits, and more.
There are many benefits of using direct deposit. Here are five of them:
With direct deposit, you’ll never have to worry about losing a paper check again! A direct deposit account places the available funds into your checking account. If you need to access a paper copy of the deposited check for any reason, simply log into your online account to view or print it. Like all financial transactions, your direct deposit will appear on your monthly statement and in the “recent activity” section when accessing your account online or through a banking app. Electronic deposits also ensure you’re getting paid on time, even if you’re away from the office.
Gone are the days of picking up a physical paycheck and waiting in line to make a deposit through a bank teller or drive-thru ATM. To ensure your paycheck has been deposited, simply log into your online bank or credit union account to make sure the funds have arrived. The best part? No wait time. You’ll have access to your money immediately.
Another advantage of direct deposit for employees? ACH offers considerably more security than a physical paycheck. There’s zero risk of a digital check getting lost, stolen or even forgotten when it’s deposited automatically each month or every other week. This not only protects your financial data but also safeguards your employer’s account information.
Direct deposit makes it much easier to stick to a budget. How? You can have monthly expenses, such as your electricity or gas bill, mobile phone payment, or student loan payment, deducted immediately after your paycheck reaches your checking account. You can even have funds automatically moved into your savings account on a certain day each month, making it less tempting to spend when you’re trying to save.
Another benefit of direct deposit? Security and protection. Once your cash reaches your bank account, it’s guaranteed by the Federal Deposit Insurance Corporation, a U.S. government agency that insures money placed in banks.
Financial institutions such as Texas Tech Credit Union protect members by providing comprehensive insurance coverage from the National Credit Union Administration, which covers up to $250,000 per person on a single account.
Now that you understand the benefits of direct deposit, how can you set it up? To sign up for direct deposit, you must have a checking account at your local bank or credit union. If you already have an active checking account, simply call or visit a nearby branch to set up direct deposit or sign up for it online.
If you don’t currently have a checking account, it’s time to get one! Checking accounts offer convenience through advanced security measures, allowing customers to oversee expenses and pay bills. Setting one up is simple.
Direct deposit offers more security, convenience, protection, and opportunities to set and stick to a budget. Learn more about signing up for direct deposit with Texas Tech Credit Union. Stop by your local branch or visit us online to sign up today!