Most people fall into two categories regarding getting paid. You either receive a physical paycheck, or your company directly deposits your paycheck directly into your bank account. But do you know or understand exactly what direct deposit is? How does it work? What are the benefits?
Here’s everything you need to know about direct deposit.
What is direct deposit?
Direct deposit is a system whereby your employer deposits your salary or wages directly into your bank account. Setting up direct deposit means you don’t have to go to the bank to deposit your paycheck – it’s all done automatically.
How does direct deposit work?
When you sign up for direct deposit, you’ll need to provide your employer with your bank account details (including the account number and routing number). Your employer will set up a direct deposit schedule with their bank, and your salary or wages will be deposited into your account on that schedule.
Here are the top 5 benefits of direct deposit
1. Convenience: Direct deposit is convenient because you don’t have to go to the bank to deposit your paycheck – it’s all done automatically.
2. Speed: With direct deposit, you’ll typically receive your salary or wages faster than if you were paid by check. This is because there’s no need to wait for the check to clear before the funds are available in your account. Even better, at SkyOne, set up direct deposit, and you’ll get your paycheck 1-2 days early. With SkyOne’s Direct Deposit Wizard, setting up direct deposit is faster and easier than ever.
3. Security: Direct deposit is a very secure way to receive your salary or wages because the funds are transferred directly into your account – there’s no risk of losing a paper check.
4. Accuracy: With direct deposit, you can be confident that you’ll receive the correct amount of money because the funds are transferred directly into your account. This is in contrast to a paper check, which could be lost or stolen before you have a chance to deposit it.
5. Savings: Direct deposit can help you save money because you won’t have to pay for check-cashing services.
If you’re not already using direct deposit, we hope this article has convinced you to sign up! It’s a convenient, fast, secure, and accurate way to receive your salary or wages. Click here to learn more about getting paid 1-2 days early with SkyOne’s Early Arrival. Remember to sign up and use SkyOne’s Direct Deposit Wizard for a fast and easy direct deposit setup.