By Tina Robinson
Union Bank, N.A. Senior Vice President and Regional Manager
In today’s challenging economic environment, increased control over personal finances has become a priority for many customers. A simple, efficient and productive tool that local residents can utilize to manage their finances and boost their savings is direct deposit—the electronic transfer of your net pay into a designated checking and/or savings account at your financial institution.
According to a national survey sponsored by the U.S. Treasury Department’s Go Direct® campaign, which encourages people who receive Social Security and other federal benefits by paper check to switch to direct deposit, Americans said direct deposit superseded both ATM cards and checkbooks as their most important tool for managing personal finances. Additionally, a Union Bank-sponsored study found that 50 percent of respondents plan to put more money away each month in the accounts they have with their bank to get in better financial shape. The Consumer Federation of America also encourages direct deposit through its America Saves campaign.
By enrolling in direct deposit, you can help build your savings by automatically directing a portion of your income to your savings account and a portion to your checking account. Designating a portion of your earnings toward savings each month forces you to start saving and enforces a good financial habit.
Many employers offer direct deposit. You can establish direct deposit by meeting with your payroll department, filling out some paperwork and providing your banking account(s) information, such as routing number and your account number(s) for the electronic transfer of your payments.
Direct deposit offers additional benefits including:
• Fast. The day your check is issued, it is deposited into your bank account.
• Security. Using electronic transfer helps reduce the possibility of paper checks being lost or stolen, which in turn may also help reduce the possibility of identity theft and mail fraud since there is no actual paper check to steal or forge.
• Efficient. Direct deposit will reduce your trips to the ATM and can save you time.
• Savings. In addition to boosting your nest egg with automatic payments to your savings account, you can also reap savings on checking accounts at financial institutions that offer free or lower-cost checking for clients using direct deposit.
• Practical. If you travel often or have limited time to visit the bank to deposit your checks, direct deposit may be a suitable option.
Direct deposit provides a simple, convenient and productive option to have increased control over your finances while building your nest eggs.
The foregoing article is intended to provide general information about direct deposit and is not considered financial or tax advice from Union Bank. Please consult your financial or tax advisor.
Tina Robinson is a senior vice president and regional manager for Union Bank, N.A., a full-service commercial bank providing an array of financial services to individuals, small businesses, middle-market companies, and major corporations. The bank has 340 banking offices in California, Oregon, Washington and Texas and two international offices. UnionBanCal Corporation is a wholly-owned subsidiary of The Bank of Tokyo- Mitsubishi UFJ, Ltd., which is a subsidiary of Mitsubishi UFJ Financial Group, Inc. Union Bank is a proud member of the Mitsubishi UFJ Financial Group (MUFG, NYSE:MTU), one of the world’s largest financial organizations.
Visit www.unionbank.com for more information.