Posted by: deltadallas | December 29, 2010

Why Direct Deposit?

Direct deposit has become the standard for most companies as they pay their employees each month. Employees in this economy have the convenience of immediate payment and employers have the ease of electronic transfer rather than hundreds of signed checks each pay period.

Here are some of the primary benefits of using direct deposit:

  • Your check cannot be lost or stolen. You will never have to stand by your mailbox waiting in angst for your check to arrive!
  • Payments reach your account the day the check is issued. If you are sick, if there is a bank holiday…or even if you are out of town, your funds are sent directly to your account.
  • You can avoid overdraft fees due to poor timing with direct deposit because your money is already in the bank! It is direct, and most importantly, on time.
  • You save time that you would have spent driving to the bank or waiting in line.

As we begin 2011, it is a good time to enroll in direct deposit both for convenience and security. Direct deposit, though, is a precise process and must be followed to the letter in order for information to be gathered and processed with 100% accuracy. Accuracy is, after all, imperative when you are dealing with employees’ income!

How to sign up:

Most companies will require that you fill out their own direct deposit form and ask you to submit a voided check. It is essential to have the voided check so that the employer can verify that the banking information provided on the completed form matches actual bank account information.

If you have a checking account but don’t have checks:

Many people no longer carry checks. If this is an issue, most banks will have a direct deposit form that is generated through their computer system with the same information as a voided check. This form can, in most cases, replace a paper (voided) check.

Vanessa Henkelman is the Accounting Manager for Delta Dallas. You can reach her at vhenkelman@deltadallas.com.

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