Year-End Smart Money Move #6: Set Up Direct Deposit From "Daily Money Dish: Dolans.com

Year-End Smart Money Move #6: Set Up Direct Deposit

This simple year-end money move will pay dividends throughout 2010!

Direct deposit is a simple way to save time and grab a little extra income (every little bit counts!).

Direct deposit is simply having your employer deposit your paycheck directly into your bank account rather than giving it to you. You get to save the hassle of making time to run to the bank. Plus you earn the extra interest that you lose every day that paycheck sits in your hands waiting to be deposited.

Many people even find that they receive their paycheck the day before payday through direct deposit. Tell your payroll department that you would like to set up direct deposit for your paycheck. There is a simple form to fill out and you're done!

Direct deposit isn't just for paychecks! You can also use direct deposit for your Social Security check. Jot down the name of your bank, your account number and your Social Security number, then give the Social Security Administration a call at 1-800-772-1213 and tell them you would like to set up direct deposit.

Read More In: Banking Family & Money

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Angel

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member since: 12/14/2009
rank: 362 of 712
1 comments

December 14, 2009 1:50 AM updated: December 14, 2009 1:51 AM

There is also a risk that under some circumstances, requiring employees to accept direct deposit of wages may raise an issue of disparate impact on minorities. The EEOC may feel that if statistical evidence shows that more minorities than non-minorities have trouble getting and keeping a bank account, then a direct deposit requirement by the employer would have a disproportionate impact on minorities. As a practical matter, this would most likely be an issue only with employees paid at or near the minimum wage, or at the lower end of the prevailing average wage scale in the area. However, FDIC insurance on bank accounts is one of the things helping consumers sleep a little easier during these crazy financial market conditions. Online savings accounts that are insured by FDIC should have no different protection than funds kept in a local bank that's FDIC insured by the OCC.

miafranckeska

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member since: 12/20/2009
rank: 177 of 712
2 comments

December 20, 2009 11:51 PM updated: December 20, 2009 11:53 PM

Recent surveys have indicated that a lot of people are lacking much of a finance education. Not necessarily stock instruments and so forth, but a basic understanding of personal finance, like effects of inflation, and the value of saving. Since the early 80s, the government pursued economic policy which created a surplus of credit funds, which has encouraged a culture of debt - which was odd, as generations past saved for everything, and budgeted to put money away, as they wouldn't want to need a payday loan every few months. I hope that this could help you to budget everything.

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