A direct deposit account, or receiving a paycheck electronically, is a great feature offered by many employers. Environmentally friendly, this paperless process is also a great benefit to employers and employees both. Initially, an employee submits a check from the account she would like to be paid into. Once payroll registers the account’s information, all future paychecks (and often expense reimbursement) happens much like a cash deposit into the account.
Instituting a more automated approach saves employers money and resources that would otherwise be used for preparing payroll manually. The employee benefits from the general convenience of the whole process. Here are nine direct deposit benefits that can improve your financial life.
1. Get it Today Perhaps the primary benefit for employees using a direct deposit account is that you get your money sooner. Since the payment is electronic, the wait time for accessing funds is minimized.