Improved use of funds - No more estimating mail and processing time to determine when to send bills, no more late charges to be paid, easier to budget expenses exactly. Direct Deposit of Payroll Eliminates lost of stolen checks and the hassle associated with re-issuance. Direct Deposit provides faster access to funds, because money is available on payday without waiting for a paycheck to clear. Net pay information is more confidential. Reduces need to go to the financial institution and wait in long teller lines on busy days.
Funds are available even when employee is sick or on vacation.
Deposits can usually be split between checking and savings accounts, encouraging savings. Deposits are posted to account more quickly, thereby reducing risk of overdrawn accounts and bouncing checks. May reduce service charges on checking accounts. Employee still receives complete earnings summary each pay period. Crowe Chizek and Company LLP , Grand Rapids.