Learn more at consumerfinance.gov 1 of 3 Consumer Financial

Protection Bureau

A Newcomer’s Guide to Managing Money

Ways to receive your money

You can receive your wages in 

different ways, for example, you can 

be paid in cash, paper paychecks, 

direct deposit, or with a payroll card. 

Each of these ways to receive money has some 

potential benefits and risks, especially when it 

comes to fees, security, and convenience. Knowing 

how these products work, how much it costs to use 

them, and when you’ll be charged extra fees can 

help you make the most of your money.

Cash

Definition Benefits Risks

Cash is money that you 

have in hand.

Tip: Avoid carrying around 

or leaving in your home large 

amounts of cash. If cash is 

lost or stolen, it is difficult or 

impossible to get it back.

§ Accepted almost everywhere. § Difficult or impossible to recover 

if lost or stolen.

§ Can be tempting to spend cash 

on hand. 

§ Can be hard to track spending for 

personal budgeting purposes.

Paper paychecks

Definition Benefits Risks

Paycheck is a check for 

your salary or wages 

made out to you.

§ You can deposit into a checking or a 

savings account. A bank or credit union 

where you have an account will also 

cash your paycheck for free.

§ Safer than carrying cash. If lost or stolen, 

your employer may cancel and reissue 

the check if you report it quickly enough.

§ If you do not have a bank 

account, you may have to pay 

to cash your paychecks.

§ If you deposit a paycheck in a 

bank or credit union account, you 

may not be able to access all the 

funds immediately.

JUNE
Learn more at consumerfinance.gov 2 of 3

Direct deposit: Checking or savings account

Definition Benefits Risks

Your salary or wages are sent 

straight to your bank or credit union 

account electronically without the 

use of a paper check. May not be 

offered by all employers.

Tip: Ask your employer how 

to arrange for direct deposit. 

Generally, if you receive your 

pay through direct deposit, your 

funds will be available to withdraw 

at least as soon as if you had 

deposited a paper check, and 

often sooner. In many cases, your 

money is available on your payday.

Be aware of ATM fees you may be 

charged. Generally, you can avoid 

ATM fees by using your own bank or 

credit union’s ATMs.

§ Reduces your risk of loss or theft, 

compared to carrying cash or 

getting a check.

§ The account has consumer 

protections for funds taken by 

electronic error or theft.

§ Funds are usually available to 

you immediately.

§ Funds can be accessed via a debit 

card, ATM card, or personal checks.

§ Many employers allow you to split 

your deposit between a checking 

and savings account. This can help 

you build savings.

§ There are no fees to deposit your 

check. Many banks and credit 

unions also offer checking and 

savings accounts with no monthly 

fees when you set up direct deposit.

§ Keeping your money in a bank 

account requires you to go to 

an ATM or storefront location 

to withdraw cash when cash 

is needed.

Payroll cards

Definition Benefits Risks

Prepaid debit cards arranged by 

an employer. Your salary or wages 

are automatically sent to your 

payroll card electronically, without 

the use of a paper check.

Tip: Your employer can’t require 

you to receive your wages on a 

payroll card. They have to give 

you at least one other option 

(which might include check, cash, 

or direct deposit to your bank or 

credit union account).

§ Reduces your risk of loss or 

theft, compared to carrying 

cash or checks.

§ The payroll card has consumer 

protections for funds taken by 

electronic error or theft. 

§ Many cards charge fees for 

inactivity, purchases, ATM use, 

monthly fees, etc.

§ Potential overdraft fees if employee 

uses card without enough funds.

§ You have to go to an ATM or 

storefront to withdraw cash when 

cash is needed.

§ There may also be fees if you don’t 

use ATMs from the bank or credit 

union that issued the card.

§ You may not be able to deposit 

other funds in the account.

WAYS TO RECEIVE YOUR MONEY
3 of 3 Consumer Financial

Protection Bureau Learn more at consumerfinance.gov

Prepaid cards

Definition Benefits Risks

Your salary or wages 

are electronically sent 

to your prepaid card 

without the use of a 

paper check.

§ May be safer and more 

secure than carrying cash 

or checks. 

§ The card does not have the same consumer 

protections as a checking account or payroll card for 

funds taken by electronic error or theft.

§ You might be limited in the types of transactions you 

can use the card for. For example, you might not be 

able to use your prepaid card to pay bills.

§ Many cards charge fees for inactivity, purchases, 

ATM use, monthly fees, etc.

§ You have to go to an ATM or storefront to withdraw 

cash when cash is needed. 

Contact us

 Online

consumerfinance.gov/askcfpb

 By phone

Toll free: (855) 411-CFPB (2372) 

TTY/TDD: (855) 729-CFPB (2372)

 By mail

Consumer Financial Protection Bureau

P.O. Box 4503

Iowa City, Iowa 52244

 Submit a complaint

consumerfinance.gov/complaint