Direct Deposit: Why It's the Easiest Way to Get Paid

We all want instant access to our income, so why wait for a check to come in the mail? The good news is you don't have to! And while you're at it, why not enjoy some extra perks? Make the switch from paper checks to automatic deposits and reap the effortless benefits!

What is Direct Deposit?

Direct Deposit works almost exactly the same as a check does, though it speeds up the process by skipping the steps involved to clear a check and directly transfers the funds to your financial institution. Income received from various sources, such as your employer, Social Security, retirement plans, and more, may be eligible for direct deposit.

Depending on your preference, these funds can be automatically deposited into your savings or checking account. This happens through the Automated Clearing House (ACH), a network that processes electronic payments and transfers between financial institutions. Once the funds are processed, they're yours to keep!

Get Your Money Faster

Unlike a check, which can take several days or even over a week to clear, a direct deposit only takes about 1 to 2 business days to clear through the clearing house. Checks take time to be printed and sent to you, but direct deposit allows you access to your paycheck as soon as payday hits!

Since your money will be automatically deposited into an account, you don't even have to visit a branch to get paid! As soon as your funds go through, you will have instant access to them and can use them for whatever you need. 

Access Any Way, Anywhere

When your income is deposited into your account, you can use it however you like! The funds are yours to transfer between accounts, make payments on bills or loans, or use for purchases through a debit card. 

For example, on our online or mobile banking, you can see pending direct deposits and when they are scheduled to clear. You'll know as soon as the funds are deposited, and you can transfer, make payments, and use your cards all in one place through things like our Mobile wallet. It's never been easier to manage your money!

Checking Versus Savings Accounts

So now that you're thinking of setting up direct deposit, where should you put the funds? It all depends on what you intend to use them for!

Having your income directly deposited into your checking makes managing everyday expenses much easier, especially if you're enrolled to auto-pay for any of your bills. It's a good rule of thumb to keep enough money in your checking account at all times, especially if you have automatic withdrawals each month. And the best part is that opening a checking account can earn you perks!

Check out our Perks page for benefits like lower loan and credit card rates, plus a deposit gift from Levo!

Alternatively, you could set up your deposit to put income into your savings if you have the means. Having even a part of your income directly deposited into your savings account every month adds up quickly, and the more you save, the more you have in store for big future events or emergencies.

Dig Deeper: Build an Emergency Fund

Why Levo?

The unreliability of life can be stressful, so why worry about the timing of your finances? If there's one thing you should be able to count on, it's your income, and direct deposit can help with that. Regardless if it's deposited into a checking or savings account, both are easy to set up and access at any time without a visit to a branch.

As a member-owned credit union, we know a thing or two about the daily hustle. We aim to serve, so we offer perks for new members who open checking accounts with direct deposit. All you need to do is ask! Our staff is always happy to help.

Ready for membership? Learn more here.