Besides saving you a trip to the bank, there could be some added benefits to having your paycheck deposited directly into your bank account.
Of course, there’s the obvious benefits of direct deposit, which enables you to see your paycheck clear the bank’s computer system; you get your cash faster than with a manual deposit and it also reduces the risk of your losing your paycheck.
But having your paycheck deposited electronically to your checking account could also lead you down a path to better interest rates as well.
So, how does that work? Call your bank and ask what interest rate benefits you might accrue if you opt for direct deposit.
Make no mistake, banks want you to use direct deposit as it gives them a highly sustainable pipeline to constant cash and saves them the paperwork and staff-power hours in handling your paycheck through traditional means.
In other words, they want you to deposit your check electronically and will likely want to make it worth your while to do so.
So during that call to your bank, the sales representative will most likely steer you to some form of a high-yield checking account or high-interest rate rewards program where direct deposit is both mandatory and, interest-rate wise, a good deal for consumers.
For example, take F&M Bank, a regional bank based in Clarksville, Tenn. The bank’s highest-yielding checking account is its “Smart E-Checking Account.” The account is billed by F&M as the preferred account for checking account customers who want to earn a great interest rate and prefer to do their banking electronically. The “Smart” online account is currently yielding a 5.0% yield on all deposits, up to $50,000. It also offers the use of any ATM anywhere at no charge; free express online banking and bill pay; free express phone banking; a free VISA ExpressCheck card; unlimited check writing; a monthly E-Statement and a $700 overdraft protection.