direct deposit myths and facts

Posted : January 23, 2018
Last Updated : January 23, 2018
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direct deposit myths and facts

Using direct deposit for your paycheck and state or federal benefits saves you money and is safer and easier than using paper checks. The following are common misconceptions about direct deposit and the corrected facts.


MYTH: Receiving paychecks or benefit payments in the form of a paper check gives you more control over your money because you can deposit it at your bank or credit union when it is convenient for you.
FACT: With direct deposit, your money is immediately accessible, it eliminates the risk of stolen checks and forgeries and helps protect you from identity theft.

MYTH: Switching to direct deposit is time-consuming and a hassle.
FACT: Enrolling in direct deposit is usually fast and easy. If you receive Social Security or Supplemental Security Income (SSI), call Go Direct's toll-free helpline at 1-800-333-1795, visit Go Direct, or contact your local bank or credit union to sign up for direct deposit.

MYTH: People who don't have a bank account should not consider direct deposit.
FACT: If you haven’t yet signed up for a bank account, call the U.S. Treasury’s Go Direct toll-free helpline at 1-800-333-1795 for help finding a financial institution that offers low- or no-cost accounts.

MYTH: If you use direct deposit, you won't know when your money is in your account.
FACT: You can be sure your money is in your account by the time your bank opens on payment day. Paper checks can be lost or stolen.

MYTH: Direct deposit does not really save time because the check still must be mailed to the bank.
FACT: With direct deposit, your payment is electronically transferred to your bank account. The payment process is completely paperless.

MYTH: Direct deposit isn't a trustworthy way to receive federal benefit payments.
FACT: Direct deposit is completely reliable. You're 30 times more likely to have a problem with your federal benefit check than with your direct deposit payment.

MYTH: Direct deposit isn’t as safe as receiving a check because it’s sent over the Internet.
FACT: Direct deposit works by transferring funds directly into your account through a highly secure electronic banking system – not the Internet. It’s the same system used by the world’s leading financial institutions.

MYTH: Direct deposit is expensive.
FACT: Most banks and credit unions don’t charge you to sign up for direct deposit. In fact, they may waive your monthly checking account fee if you have direct deposit.


Source: PlanningYourDreams.org
 

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