Direct Deposit: Myths vs Facts
Using direct deposit for your salary check or federal benefits is safer and easier than using printed checks. Below are some clarifying points about direct deposit.
MYTH: Receiving salary or benefit checks in a printed check gives you more control over your money because you can deposit a check in your bank or credit union when it is more convenient for you.
FACT: With direct deposit your money will be in your account on the same day each month, eliminating the risk of stolen or forged checks and protecting you from identity theft.
MYTH: Changing to direct deposit takes time and is inconvenient.
FACT: Signing up for direct deposit is fast and easy if you receive a salary check or government benefits. If you receive Social Security or Supplementary Salary Insurance (SSI) you can sign up for direct deposit in less than 5 minutes by calling the toll free number 800-333-1795, by going to the website www.GoDirect.org, or at your local bank or credit union.
MYTH: Persons who do not have a bank account should not consider direct deposit.
FACT: There are options available if you do not have a bank account. Call the United States Treasury toll free number at 800-333-1795 to get help in locating a financial institution that offers low cost or free accounts.
MYTH: If you use direct deposit you won’t know when the money is in your account.
FACT: You can be sure that your money will be in your account when your bank opens on payday. Printed checks can be lost or stolen, but with direct deposit your money will be in your account on time.
MYTH: Direct deposit does not save you time because the checks have to be sent to the bank.
FACT: With direct deposit your federal benefits payment is sent electronically to your bank account. The payment process is paperless.
MYTH: Direct deposit is not a reliable way to receive your federal benefits.
FACT: Direct deposit is totally reliable. You are more likely to have problems with a printed federal benefits check than with a direct deposit payment.
MYTH: Direct deposit is not as secure as a printed check because it is sent through Internet.
FACT:Direct deposit works by a transfer of funds directly to your account through a high security electronic banking system, not through Internet. It is the same system used by
world renowned financial institutions.
MYTH: Direct deposit is expensive.
FACT: Most banks and credit unions do not charge for direct deposit transactions. They may even eliminate the monthly fee on your checking account if you have direct deposit.