This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Many Call Direct Deposit as Important as Being Paid

NEW YORK (TheStreet) -- Increasingly, paycheck aren't in the mail, but already in your bank account via direct deposit.

A survey from American Express reports that 49% of U.S. workers get their paychecks via direct deposit, offering consumers several benefits compared with paper-based paychecks:

  • Immediate access to cash from an employee's bank account.
  • A faster way to pay bills and buy goods online.
  • No waiting in line at banks to deposit a paycheck.
  • Eliminates the risk of losing a paycheck, or having it stolen.
  • No fees for cashing a paper-based paycheck.

One consumer segment that isn't benefiting from direct deposit is the so-called "under-banked" -- a demographic that includes 70 million Americans, according to American Express, and as a result pays an additional $89 billion in fees and interest by depending on pawn shops, check cashing services and payday lenders.

"Direct deposit can save you money," says Manisha Thakor, chief executive of MoneyZen Wealth Management, a holistic-based money management firm in Santa Fe, N.M. "Even a fee as 'low' as 1% for cashing your paycheck can result in your giving away hundreds of dollars each year."

"By having a portion of your paycheck direct deposited onto a high-quality prepaid card you can stop that fee leakage," she says. "You can then use your prepaid card to pay bills, shop and even store your emergency fund and other planned expenses, thus enabling you to carefully track and monitor your spending and savings for increased control over your daily finances."

According to the Amex report, Americans put a high priority on getting paid via direct deposit: 75% say that getting their paychecks deposited directly into their bank accounts is as important as getting paid, considering 77% of direct-deposit consumers get access to their cash up to two days quicker than employees who get their pay by check. They even call it more important than taking a vacation.

If your company doesn't offer direct deposit, you have leverage to change the equation. Amex says setting up a direct deposit program doesn't cost employers big fees. Banks prefer to handle money electronically -- it saves them money on operating costs.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs