Direct Deposit and Saving Money
Author: Tammy Doss
Many of our temporary employees are taking advantage of Direct Deposit. It is convenient for several reasons. Your check automatically gets deposited to your bank account on payday. You don’t have to worry about making a special trip to the bank. You don’t have to complete a deposit form and you don’t have to worry about misplacing or losing your check. Finally, your check will not be lost in the mail further delaying your pay if you have your checks currently mailed to you.
Once you complete a one-page form that is readily available in the San Francisco Job Shop Office which only takes about 3-5 minutes maximum you can be set up in our payroll system and your checks will be deposited into your bank account automatically. It does take about two weeks to pre-note which is a process that confirms your bank routing number and checking and/or savings account number. Thereafter, you are all set up and the only changes you will need to make will be if you change your banking information.
Most people who are set up on Direct Deposit have chosen to have their entire check go directly into their checking account. But did you know that you have the option to have your check go into other accounts as well? You can choose to have part of your check go to checking and part go to savings. If you consider this, and I hope you will, you can be on the road to tucking away a few dollars into savings for a rainy day. An example would be to put 95% of each of your paychecks into checking and 5% into savings. Below is a simple calculation that shows how much you could save over the course of a year. Anytime you can save a few bucks it's like rewarding yourself. Think of the possibilities you can use that money for down the road. It may not be a huge amount, but it could come in handy in an emergency!
$600.00 per week is 30 hours of work per week at $20.00 per hour. Of course you will have to consider the mandatory taxes that come out of your check and come to a net check amount. For this example, I am using a net check amount of $500.00.
$500.00 times 95% = $475.00 – this would go to your checking account
$500.00 times 5% = $25.00 – this would go to your savings account
There are 52 weeks in a year. $25.00 times 52 = $1,300.00
Your savings reward at the end of the year is $1,300.00.
If you are currently on Direct Deposit, you will need to fill out a new form and provide both your checking and savings account information if you want to start saving. If you haven’t signed up for Direct Deposit or are a new temporary employee with the Job Shop, please consider doing so. The Job Shop staff is knowledgeable about the easy to complete form and can walk you through it. I encourage you to put 5% or more into your savings and reap the reward.