What About An "Automatic Deposit" Of My Paycheck?
- "Automatic Deposit" means your paycheck isn't sent to you in the mail or given to you at work.
- Your check is deposited directly into your checking account.
- Automatic deposits probably make sense, and they are convenient.
- Automatic deposits are also probably safer. You know your money is going to make it into your account.
But those reasons aren't why financial institutions want you to do direct deposit of your paycheck..
- Automatic deposits save your employer money. Nothing wrong with that.
- They also make your banking institution money - they get to use your money for a little bit without paying you interest.
How do they make money?
There's a brief delay between the time the bank gets your money and when it credits the money into your account.