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DIRECT FUND TRANSFERS
Direct Deposits are the electronic way to transfer money to someone’s account directly, it is most helpful in situations like payment of paid salaries, hourly wages. It clearly eliminates the needs of paper checks and the hassle of handling it with care.
It is the most preferred way of payment used by big companies to pay the salaries of employees because they cannot afford to use the check for thousands of employees.
Direct Deposits have an advantage for both the parties involved in the transactions. i.e for employees and for the companies.
- Their salaries are immediately added to their bank account on the payday only and they don’t have to carry the hassle of protecting checks and clearing it in the bank.
They can receive their pay, no matter how far they are from their office or the country because the payment will be added to his account directly.
- And the layer of privacy is also added to it rather than paper checks.
- It can be used as a tactic to recruit new employees.
- Any company regardless of its size can use it easily to transfer the funds.
- Some banks offer their customers discounted offers on using direct deposits.
But There is One Disadvantage As Well
If you have overdrawn the bank account for some extra money you needed next time when you will deposit the money in your bank account the amount will be used to first cover the overdraft amount. But that does not seem like a disadvantage it is just the procedure of any bank if you take money from them you have to give it back.
I Hope that it is clear to you now and if you liked the information provided by us and if you do comment down below and share this post.