May is Direct Deposit and Direct Payment Month, but what does
that mean for us as everyday people?
Direct Deposit is the direct movement of funds
from an employer's account to an employee's account electronically.
Funds are available first thing in the morning on the day you are
paid…no trips to the bank, no waiting in line, no waiting for check
holds; even better you can use your debit card to purchase gas and
morning coffee with that deposit on your way in to work!
For example, Bill didn't have time to stop by the bank on his
lunch break because he was attending an awards program for his son.
But he wasn't worried about having money for the weekend because
Bill had signed-up last month for direct deposit so his paycheck
was already in his account. He would get some cash back at the
grocery store when he picked-up drinks for the trip and they could
leave early in the morning with no hassle.
Direct Payment is the pre-authorized debit of
funds usually to pay a recurring bill. Most people find Direct
Payment convenient for recurring bills with the same invoice: life
insurance, mortgage, security system, or car insurance. Having
these bills set-up for recurring direct payment makes for easy
accounting and one never forgets to pay timely.
An example: Sue forgot to pay her credit card bill and it will
cost her a $25 late fee if she doesn't call before 4 pm today. The
representative mentions that she can sign-up for automatic
payments: her credit card company can automatically debit the
minimum due or a designated amount monthly. "Can I do it over the
phone?" Sue asks. The representative assures that she can, and
better yet she will still make it her yoga class. Now she will
really be able to relax and enjoy the class!
These are just a couple of examples of how Direct Deposit and
Direct Payment work in our everyday lives allowing us to enjoy
life! Don't get left behind, sign-up for direct deposit and direct
debit today and make sure your payments move at the speed of
For more information on Direct Deposit and
Direct Payment, contact American Gateway Bank at