Years ago, pay day involved receiving a paper check, running to the bank before it closed, and standing in a long line to deposit or cash the check. After depositing the check, you then had to wait for it to clear and until it did, you had to hope that you had enough in your account to cover any incoming expenses.
Times have changed and direct deposit has made those days a thing of the past. Direct deposit is an efficient and convenient way to receive your military pay. With direct deposit, your pay is automatically deposited into your checking and/or savings account. Statistics show that 82% of U.S. workers are paid with direct deposit and it’s easy to see why—direct deposit offers plenty of benefits.
Benefits of Direct Deposit
Keeps your money safe – You don’t receive a paper check that could become damaged, stolen or lost. If you need to view your pay statements, you can still do so through the DoD DFAS myPay website.
Saves you time – Your money is deposited directly in your designated account(s) so you don’t have to go to a bank or ATM to deposit your check.
Gives you immediate access to your money – You can use your money as soon as it is deposited into your account. No waiting for a check to clear.
In fact, you may get paid earlier than the official payday. USAA is a bank that serves active duty, retired and separated members of the United States military. According to Military.com, USAA bank customers will have their military pay “deposited one business day prior to the actual military payday.”
You can receive your pay even if you’re not at work – Whether you are sick or on vacation, you will still receive your funds on time.
Makes it easy to save – When setting up your direct deposit, you can choose to divide your paycheck into different accounts. While you can put most of your money into a checking account to pay for your expenses, you can also allocate a certain percentage of your pay to a savings account. This is a painless way to automate your savings and build an emergency fund or save for a specific financial goal.
It’s free– Direct deposit does not cost an employee anything.
If you’re new to direct deposit, find out how convenient and beneficial this type of electronic money transfer can be!