More and more tasks are becoming computerized every day, and the advantages of this transition keep piling up. Computerization has, for example, lead to the proliferation of highly advanced financial software, including many programs which have been a boon to both AFS Taxsavers and our customers. Indeed, it would be exceedingly difficult to find an industry which was not radically altered (and improved) in recent years as a result of discovery and utilization of highly-compelling computer-based technologies and processes. The banking industry is clearly not an exception. When considering the many ways the computer has altered and continues to alter the landscape of the banking industry, one of the most impressive and useful developments yet made would have to be the invention of the direct deposit system.
How Direct Deposit Works
- The process begins when an employee works in tandem with their employer to set up a direct deposit account. All it requires is some paperwork and some basic information, as well as a voided check and the employee’s social security number.
- Once direct deposit goes into effect the employee will no longer receive standard paychecks. Instead, the money they earn will go directly into their bank account.
- Following the completion of the transaction the employer will present the employee with a receipt or voucher indicating the amount of capital they have earned.
The Benefits of Direct Deposit
- It’s more convenient: A check can be misplaced, lost or even stolen. At the very least, they require the recipient to visit the bank. With direct deposit you won’t have to worry about keeping your check safe and you won’t have to endure the hassle of a bank visit.
- It’s faster: Checks can sometimes take a day or more to clear. On the other hand, there is absolutely no delay with direct deposit. You get your money on the day it is sent. This expediency can even help you avoid the hassle of bouncing checks.
- Banks appreciate it: Banks spend a great deal of money every year processing paper checks, so they are more than happy when the employer of one of their clients utilizes the direct deposit system. It might just lower the cost of your checking account.
Direct deposit is certainly a fantastically useful innovation. Let us make the arrangements to guarantee your successful participation today.