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Direct deposit is a payment option where your funds are electronically transferred to your checking or savings account, eliminating a need for physical checks.
With electronic statements, online banking and mobile apps, paper paychecks can seem oddly out of place. Among American workers, about 93% choose to receive paychecks by direct deposit,...
With direct deposit of your paychecks and automatic payment of your bills, you don’t need to worry about mail delays and shuttered bank branches.
A salary statement, commonly called a payslip, pay stub, paystub, pay advice, or sometimes paycheck stub or wage slip, is a document received by an employee that either includes a notice that the direct deposit transaction has gone through or that is attached to the paycheck.
Direct deposits are most commonly made by businesses in the payment of salaries and wages and for the payment of suppliers' accounts, but the facility can be used for payments for any purpose, such as payment of bills, taxes, and other government charges.
Such warrants look like checks and clear through the banking system like checks, but are not drawn against cleared funds in a checking account (demand deposit account ). Instead, they may be drawn against "available funds" or "out of fund 0027" so that the issuer can collect interest on the float or delay redemption.
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