banking

What is direct deposit?

 

What is direct deposit?

The Bankrate.com financial term of the day is: "Direct deposit."

With direct deposit, you get paid, and nobody ever puts cash in your hand or presents you with a check. It's an automatic deposit of wages, a benefit such as Social Security or some other payment, such as a tax refund, that seems to go into your bank account as if by magic. Of course, you have to fill out paperwork to allow money to be transferred electronically from the payer's bank to your bank.

Use direct deposit for peace of mind, so you won't worry about losing a paycheck on the way to the bank or having your tax refund stolen by a mail thief.

To shop for a bank account, visit the checking and savings section at Bankrate.com.

 

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