A direct deposit bank account will make your life simpler in many ways. An inexpensive payment option for one and all, a direct deposit account is basically an electronic payment that allows you to make transactions from one bank to the other.
Every time you receive funds in your account through a direct deposit, the account balance will show an automatic increase. You do not have to do anything to complete the transaction. Similarly, when you make a payment, the recipient will be notified when he receives the amount in his account. Your balance will decrease automatically as soon as the payment is processed. Majority of businesses and individual professionals use the direct deposit bank account as it is convenient, easy and quick to make transactions without requiring any action from the part of the recipient.
Prerequisites of making and receiving payment through a direct deposit bank account
There are a minimal set of banking formalities that you need to complete before you start using a direct deposit bank account.
- For receiving payments, you will need to share your bank account details with the party responsible for making the payment. Such details may include your bank account number and name, bank name, bank branch, and its address, and the type of account you hold.
- For making payments, you must get in touch with a financial institution who allows Automated Clearing House (ACH) payments. Next, you must collect the relevant information about your payees so that you may transfer funds from your account to theirs.
Why should you opt for a direct deposit bank account?
A large percentage of business owners, as well as consumers, have already switched to this account for multiple reasons. It allows automated deposits. Even when you are busy or traveling, the funds will be added to your account and you will not be required to take any action. You do not need a checkbook or the requirement to print checks.
The payment will not take any longer than half a day to be processed and for the amount to be reflected in the account of the recipient. The record of the payment will be available in the transaction history of your account. There is no need to write down all the details every time you make a payment. There are no chances of fraud or theft.