Nov 4th, 2014 Payments
Direct deposits are regular automated money transfers done between bank accounts electronically. The payments are done as per the date, time and period chosen by the payor. Direct deposits are safe, secure and easy, they save the hassles of going to a bank to collect salaries, social security benefits etc. In this new era of technology, it’s a gift to mankind. With direct deposits, the payee (receiver of payment) need not to worry about check clearances as the payment will be done with direct cash via electronic transfer.
Direct deposits are most suitable for all age groups that are eligible to receive funds via direct deposit. Customers require checking or saving accounts with banks to be able to receive and pay direct deposits. Setting up a direct deposit leaves us with an easy procedure for regular payments, while giving us the benefit of saving time.
The procedure to set up a direct deposit is listed below –
Direct deposits are usually set up for –
In case of payments made by employers to employees the direct deposit can be made between two accounts such as the savings and current accounts. This can be done only by the approval of the employer. If the payees have an additional amount in their account and choose to save, they can certainly set up a standing order to make regular money transfers from their current to savings account.
Electronic transfers are secured by bank, if there are any issues with the transfer. Banks will investigate the reason for the error, if the bank is held liable they will reimburse the cash. If not, they will check what caused the error and rectify it based on the scenario. Direct Debit is quite safe and secure and mostly error free so you can use it confidently.