Day 15: Get Direct Deposit

by Jason Unger

There’s almost no spiffy commentary I can offer about today’s chapter.

Direct deposit makes life easier. If you have access to it, then you should use it. There’s almost no reason not to use it if you can.

That’s it. Read today’s chapter and get it done!


Today most employers offer direct deposit for their employees’ paychecks.

It seems like a no-brainer – who wouldn’t want their income added to their bank account automatically on payday – but still, not everyone uses it.

Make the changes at work to ensure that you have direct deposit set up. This will ensure your money is available when your bills are scheduled to be paid and your savings transferred.

Having the income automatically deposited into your account removes an extra layer of management; you don’t have to find the time to go to the ATM and deposit your check or worry about having enough for scheduled transfers.

People Who Use Direct Deposit Save More Money

According to a study by NACHA – the Electronic Payments Association, people who use direct deposit and direct payment save $90 more per month on average than those who don’t.

“People who save using electronic payments are usually more consistent and committed savers,” said Diane Freeman, 2007 chairman of MMG and FedACH product manager at the Federal Reserve Bank of Atlanta.

“Once you set up Direct Deposit or Direct Payment, the money goes into your savings account automatically each month. You are less likely to notice the deduction if this happens automatically versus manually.”

Having direct deposit is not necessarily responsible for that extra savings, but by making the financial process one-step simpler, it’s easier to save.

With Instant Deposits, You’re Not Losing Interest

If you have an interest-bearing checking account or a portion of your paycheck is being transferred to an online savings account, carrying around a check can actually be costing you money.

Think about it: when you have a check in your wallet or purse (or even a large amount of cash, for that matter), it’s not making any interest. Your money can’t work hard for you when it’s going everywhere you do.

You don’t need to wait until your check clears like when you deposit it at an ATM. The money is there and it’s yours.

Setting up direct deposit doesn’t take long at all; talk to your human resources department about getting it set up today. You only need to do it once, and then you’re done.

TIP: One of the obvious benefits of direct deposit is that you’ll never lose your paycheck. Why bother taking the chance that you’ll misplace a big check? It’s just not worth it.

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