Direct deposit refers to the process of automatically depositing money you've earned into your checking account.
Most often, this money comes from your job. However, the IRS also offers direct deposit for your tax refunds. Social Security, unemployment payments, and other government programs also use direct deposit.
Why it's worth it.
- Faster. Money appears in your checking account faster than waiting for a paycheck to clear.
- Greener. Checks use paper, but direct deposit is paperless (and you'll still be able to view a receipt online).
- More reliable. You could accidentally lose your paycheck, or you could forget to deposit it. Direct deposit prevents this.
If you’re employed, ask your boss or someone in Human Resources about how to get paid automatically. It’ll keep cash in your bank account more consistently, which can help improve your credit score and make paying bills easier.