March 29, 2024Key Benefits of Direct Deposit

Are you using direct deposit yet? If not, there’s virtually no reason not to make the switch. The term simply refers to your employer or other income source depositing your paycheck electronically into your account. This is a very secure process, and one that is being used by millions of people every day. 

In fact, many people see direct deposit as one of their top money management tools. Your employer can usually help you set it up within a few minutes, and once in place, you never have to think about depositing another paper check again. 

Why Direct Deposit Your Next Paycheck? 

There are several key benefits to direct deposit, more so than other types of deposit methods. First, consider how it works. It is a type of Automated Clearing House (ACH) transaction that is very safe and effective. The money is electronically directed from one account (usually your employer’s) into your checking or savings account. Think about how great this is for you: 

  • Direct deposit is faster because it is electronic. You do not have to wait to be handed a paper paycheck or rely on snail mail. Many employers set it up so that the funds are deposited in your overnight.  Usually, your money is already in your account when you wake up in the morning on payday. Plus, IRS, Social Security, and other government payments are available at least two days early when you use your PEFCU account for direct deposits! This gives you faster, more convenient access to your money.  
  • You can use direct deposit to receive nearly all types of payments. This includes pay from employers, investors, and certain government agencies. Even pension plans can pay directly into your account. 
  • It offers a higher level of security, as it eliminates possible check fraud. There’s no risk of someone stealing your paycheck when the funds are electronically deposited into your account. 
  • Your payment cannot be lost. It goes where it needs to go, and it cannot transfer to the wrong account. That gives you peace of mind. 
  • There is no need to wait in long lines on payday. Imagine skipping the line every paycheck! And, that deposit happens no matter where you are or what you are doing. You can be on vacation and have your funds arrive in your account so you can use them right away. 

From an employer’s standpoint (or a government agency), direct deposit is more cost-effective than using traditional payroll checks. It can reduce the overall cost of money movement significantly and prevent possible fraud. Publix associates can sign up for direct deposit through Passport. 

How Do You Set Up Direct Deposit? 

Today’s technology makes setting up your direct deposit simple. You will just need to provide your employer with your basic account information, like the routing number and the 12-digit MICR Number easily found on PEFCU’s online and mobile banking platform under Account Profile.   

We’re Here to Help! 

If you have any questions on direct deposit or would like additional information, simply stop by any branch location or give us a call at 800-226-6673.  


Each individual’s financial situation is unique and readers are encouraged to contact PEFCU when seeking financial advice on the products and services discussed. This article is for educational purposes only; the authors assume no legal responsibility for the completeness or accuracy of the contents.  

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