Almost 93% of Americans receive their paychecks through direct deposit—which makes sense. When it comes to money management, predictability is your friend. Getting paid through direct deposit is free, secure, easy to set up—and you can expect to see your paycheck in your account every pay period thereafter. Predictability: Check!
Here are a few more reasons why direct deposit is a money management essential, and how to set up your direct deposit with Simple.
Why direct deposit?
Offering direct deposit is a no-brainer for employers because it eliminates the risk of having to dole out paper checks, which can get lost or stolen. It also reduces the manual effort required to pay employees, making it more likely that employees will get paid on time.
If you get paid on a regular schedule (ie every two weeks, or once a month), you can pretty much predict when your paycheck will hit your checking account.
Here is a small (but by no means exhaustive) list of all the reasons why setting up direct deposit can help you manage your money.
1. It saves time and increases security.
Once you have it set up, direct deposit will put your money in your account automatically, so that you don’t have to worry about losing a check or remembering to deposit it via photo check deposit later. This not only saves you time, it’s more secure than having your paper check handed around too. Direct deposit also keeps your incoming pay confidential, and your pay history neatly organized in your bank account.
2. It can help you save money.
Direct deposit can help you save money automatically every paycheck, with just a little upfront effort. When you set up your direct deposit, you can choose to split each paycheck into more than one bank account: For example, you could have a percentage deposited into your primary Simple Account, some deposited into the Shared Account you have with your partner, and the rest deposited into a high-yield account every time you get paid.
Within your Simple Account or Shared Account, you can then transfer funds wherever you need them, whether that’s for living expenses, savings goals, or your emergency fund.
You can also direct a percentage of your paycheck directly into a retirement account.
Splitting your paycheck this way with direct deposit is a great savings strategy because you won’t ever see that money, you won’t have to remember to transfer the money each month, and you’ll get used to living off a slightly smaller paycheck. One day, you’ll look in your accounts and be amazed at how much you saved for retirement without even trying.
3. It can help you pay bills and avoid fees.
If you have direct deposit and your income is fairly stable, you can also set up automatic payments for things like student loans, car payments, and even rent (and you can make sure you can afford these payments using Expenses in your Simple Account). Setting up direct deposit can help you get your bills paid in full and on time–but watch out for variable expenses that might be different from month-to-month.
Many businesses have online portals where you can set up an automatic monthly payment to pull money from your account, making it easy to pay those bills on time. Direct deposit takes the work out of getting your money each pay period, so you can focus on putting that money to use.
Set up direct deposit with Simple
If you’d like to use Simple as your primary bank account, you’ll want to have your paycheck deposited directly into your account. Follow this link to learn how to set up your direct deposit with Simple. This will help you make the most of your Simple Account!
Learn more about how to use Simple’s banking and budgeting tools here.
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