Save With Direct Deposit – Daily Tip

save money with direct depositAccording to a study conducted for NACHA (the electronic payments association) by Tinucci & Associates, the total direct and indirect costs of depositing a check yourself instead of using direct deposit is a whopping $5.88. That means that if you get paid every other week, it costs you more than $70 a year to deposit your own paycheck rather than having it directly deposited.

In addition, many banks will actually offer you incentives to have your paycheck directly deposited since it costs the bank less money when you choose this option. If the bank doesn’t offer anything upfront, ask. Many banks will waive minimum balances for free checking if you ask when you agree to have your paycheck direct deposited. There are quite a few savings benefits that come with direct deposit.

To find out if your company offers direct deposit, talk with your company’s personnel department. Most large companies will offer this service, but some smaller company’s might not. If your company does offer this service, then go to your bank and have the direct deposit service set-up for one of your accounts.

Once you do, you will no longer have to worry about delays in your paycheck reaching your bank account as well as save yourself both money and time. If available, be sure to take advantage of this service.

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8 Responses to Save With Direct Deposit – Daily Tip

  1. Aahz says:

    I can’t seem to find a link of any sort to the actual findings. Any chance you’ve got one?

    I find this very intriguing, but would really like to see where they came up with those numbers.

  2. pfadvice says:

    Here’s a link – they are actually giving an estimated form now (2003) to calculate your actual costs. If I remember correctly, my numbers were from their 2001 survey when they used an actual estimate.

  3. Aahz says:

    Thanx. I had managed to find that study, but assumed it was a different one as the numbers don’t jibe.

  4. Gloria says:

    I convince my part time job to do this and I love it!!!!!!! It helps me out. It helps them out. It saves so much time. It is great.

  5. Aldeya says:

    Just want to mention.

    Check with your bank if they offer a bonus for signing up for direct deposit. I had $50 bonus added to my bank account just for signing-up.

    You do have to ask for it (at least in my bank).

  6. Champion Cheapskate says:

    Noticed that a lot of local banks seem to bundle enticing offers not just those to open an account but to add direct deposit and one or two other services too. Read all offers carefully first.

  7. Pattie says:

    I’m confused. Why would it cost me anything at all to deposit my own check. How do you figure a savings of $70.00 a year??????

  8. pfadvice says:

    I’m confused. Why would it cost me anything at all to deposit my own check. How do you figure a savings of $70.00 a year??????

    It doesn’t cost you anything to deposit the check itself into the bank, but there are other costs involved. If you make a special trip to the bank to deposit the check, you have costs in extra gas and wear and tear on your car, you are more likely to take out spending money if you deposit the check yourself rather than having it directly deposited, etc. For many, you receive special bank discounts or rewards for direct depositing that you don;t if you do it yourself (free checking without a minimum, etc) $70 was an estimate from a study and of course the amount you save would depend on your circumstances

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