When you open a debit card linked to your bank account, you also have the option of enrolling in direct deposit. This makes it even easier to keep a balance in your checking account and avoid pesky overdraft fees. A direct deposit is an automatic electronic transfer of money, typically from an employer to an employee. It is the fastest way to deposit money into your checking account, especially when you compare it to cashing in a paper check.
Setting up direct deposit with your debit card is ideal for anyone who earns regular compensation, such as a weekly or bi-weekly paycheck. It is the easiest way to get paid and have accessible funds almost immediately. In the era of COVID-19, direct deposit is the safest option to get paid. No need to stop into a physical bank just to gain access to your money.
Getting a free debit card after opening a checking account is common, just like getting free direct deposit. In fact, most banks incentivize direct deposit because it is the easiest option for them, too.
Enrolling in direct deposit is fast and simple. Most employers require you to choose how you wish to get paid before you ever clock in for your first shift. Typically, your employer will provide you with a direct deposit enrollment sheet. You’ll need to provide the following information:
- Your bank account number.
- Your bank’s routing number.
- The percentage of your paycheck you wish to deposit into the account.
Want your money even faster? Consider a debit card with early direct deposit. This is a common incentive offered by several banks and financial institutions. If you sign up for this option, you can access your money up to two days faster than standard paychecks.
Paychecks are not the only form of compensation that you can use with direct deposit. You can also receive direct deposits from other types of compensation, such as:
- Tax returns.
- Social Security benefit payments.
- VA payments.
- Unemployment benefit payments.
However, in order to set up direct deposit for these types of payments, you will need to choose this option during the application process for each specific benefit program. Likewise, you can choose the direct deposit option when filing your taxes. Not all programs offer direct deposit as an option.
Note that even if you don’t have a standard checking account, you can still opt into direct deposit as long as it is an option.