By Kate Gillan | Citizens staff
Ah, payday. That magical feeling of your hard-earned money deposited into your bank account. You’ve been patiently waiting for all your hard work to — excuse the pun — pay off. Whether you’re a spender, a saver, or somewhere in between, we all rely on a paycheck to make ends meet. You may need funds to cover groceries, bills, or you want to set up an investment account. You want to save for retirement or simply for that concert next summer. With the fast-paced, zooming from here-to-there lifestyle you’re leading, who wants to take time away from the things we love to worry about depositing a paper check? Especially multiple times a month. Enter direct deposit, and all the ease that comes along with it.
You've got this! Setting up your direct deposit is simple. Many banks offer digital and paper options to setting up direct deposit. If you’re going the paper route, all you need are some direct deposit authorization forms from your employer and/or a voided check.
Here is a visual of your check, so you can see how easy it is to find the bank routing number and checking account numbers.
Pro tip: If you’re setting up direct deposit with Citizens, you can now use Pinwheel to set up direct deposit online within minutes in just 3 easy steps.
Direct deposit can make it easier to save money if your employer allows you to split your deposit between different account types, including a checking account or a savings account. Set up only what you need for daily expenses to be directly deposited into your checking account and have the rest of your paycheck sent to savings. If your employer won't set up a split direct deposit for you, consider setting up automatic transfers to occur each pay period as soon as the money from your paycheck is deposited into your checking account. This allows you to save money without even thinking about it!
You can also set up direct deposit with IRS refunds and Social Security payments. While the IRS does allow you to split the deposit between a checking and savings account, Social Security payments must go to one account initially.
You may be wondering, how long does direct deposit take? Or, when does my direct deposit actually hit my account? Well, there’s some good news there. Some banks offer an incentive when you open a checking account where your paycheck can be deposited into your account and your funds are deposited earlier in your account. If your goal is to save money or invest it, you can stay organized by receiving an email alert when your paycheck is available. There shouldn’t be any opt-in/opt-out fees for this perk, which makes it more attractive, and no limit to the number of paychecks you receive per month. You could get paid up to two days early and get a jump start on your budgeting. You’ll never have to waste time standing in line at the bank depositing a physical check and you will also avoid the stress of that word no one wants to hear, overdrafts. Here’s a scenario: You’re waiting for your paycheck to hit Friday. But your best friend wants you to come try a great new sushi restaurant that just opened right in your neighborhood on a Wednesday. Wouldn’t it be awesome if funds hit your account Wednesday instead of Friday, and instead of sitting indoors you’re enjoying the best sashimi you’ve ever eaten?
Consider enrolling in direct deposit with Citizens for convenient access to funds and an efficient way to save money. And get paid with early direct deposit up to two days early so you can enjoy all life has to offer. For more information, learn about your checking account options.
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Disclaimer: Views expressed may not necessarily reflect those of Citizens. The information contained herein is for informational purposes only as a service to the public, and is not legal advice or a substitute for legal counsel. You should do your own research and/or contact your own legal or tax advisor for assistance with questions you may have on the information contained herein.