DIRECT DEPOSIT TRIMS YOUR TO-DO LIST

02 March 2009 12:20 p.m. Eastern
Credit Union National Association, Edited by Nicole Thompson

We're a nation on the go. There's work time, fitness time, child time, spouse time, parent time, friend time and—if you're lucky—some quiet time. Wouldn't it be nice to worry about one less thing? Try direct deposit.

With direct deposit, you authorize your employer or federal agency to deposit your check directly into your credit union account so you can count on access to funds without visiting the credit union to make a deposit. Instead of a paper check, you receive a paper or electronic record of the transaction. Employers, for example, may provide a paper or electronic earnings statement on payday showing a net deposit and how much was withheld for taxes, retirement plans, or other withheld amounts.

And direct deposit isn't just for paychecks. If you're receiving Social Security checks, PEFCU or a local or regional Social Security office can easily switch you to direct deposit.

The Internal Revenue Service (IRS) is also getting into the act. Direct deposit now delivers tax refunds to accounts of both electronic and non-electronic tax filers.

No matter where your check is coming from, direct deposit takes the worry out of:

• Stolen or misplaced checks. The U.S. Treasury Department reports that more than one million mailed Social Security and government pension checks are lost, stolen or late every year. And, more than four million paychecks are lost or stolen each year.
• Delayed deposits. Your funds are deposited regularly and on time with direct deposit. You get paid even if you're not at work on payday or can't make it to your branch during business hours.
• Losing potential dividends. With direct deposit you earn dividends on funds as soon as possible. If you have to deposit funds in person, any delay postpones when your money starts making money.
• Lost time. One estimate says direct deposit can save up to 24 hours a year otherwise spent going to your local branch to cash or deposit your paychecks.