Direct deposit is the most convenient way of receiving payment. There is nothing much you need to do for it, the money is simply added to your account. This is a low effort way of sending and receiving money in a secure manner as it completely eradicates the risk of it being physically lost or stolen. Mover, over there are no extra charges when making a direct deposit which saves you a lot of money in the long run.

In order to receive a direct deposit payment, you need to give your employer your bank account number and other details which are required to make the transaction. They may ask you to fill out a direct deposit form for which you can use the quickbooks template to give you an idea of what is needed from you. This form requires basic information and is easy to fill out so you don’t have to worry about complicated paperwork. Infect, with direct deposit, there is no other paperwork required, it eradicates the need for paper and physical documents from the money transferring process completely. This method is also faster than other conventional methods as you do not have to physically go to a bank and deposit a check before you get your money, it is simply added to your account so you get paid almost immediately. There are many companies who have exclusively shifted to this form of payment because of the convenience that it provides at both ends. This is also a good option for companies that are going green and trying to reduce their environmental footprint.

Signing for an overdraft protection can save your checks from bouncing, and your transactions from getting declined because of insufficient funds in your bank account. But some banks might charge you heavily for this feature. So, should you have an overdraft protection enabled or not?

What Is It?

In an overdraft protection, your current bank account is usually linked to a backup source of money, which would be used if your bank account ever has insufficient funds to fulfill a transaction. The linked accounts may contain a credit card, a savings account or a credit line, but beware, your bank would charge a hefty fee if you don’t have any of these accounts linked for backup.

Advantages

With overdraft protection, your bank account would never decline a payment. Here are some benefits of overdraft protection.

  • The checks and other transactions would easily go through if you have signed for overdraft protection.
  • High fee might be charged by your bank to fulfill the transaction if even your linked accounts lack the funds to fulfill your transaction.
  • Be sure to read all the terms and conditions carefully before signing up for overdraft protection, as missing out any minor detail can cost you a fortune.

Disadvantages

There are several things that you’d need to avoid of you’re signing up for an overdraft protection.

  • The interest rate on the borrowed amount is usually higher than that of a credit card. Alternatively, you can transfer money from credit card to debit card and fulfill any transactions to avoid the hefty fees.
  • If your bank account fails to complete the transaction, than you’ll have to face a big fine. And additionally, the party with the check can report the issue to the relevant authorities, causing your banking history to deteriorate (just like a bad credit report).