Direct Deposit Myths vs. Facts

Using direct deposit for your paycheck and state or federal benefits is safer and easier than using paper checks.

MYTH: Receiving paychecks or benefit payments in the form of a paper check gives you more control over your money because you can deposit it at your bank or credit union when it is convenient for you.
FACT: With direct deposit your money goes into your account at the same time each month, eliminating the risk of stolen checks and forgeries and helping protect you from identity theft.

MYTH: Switching to direct deposit is time-consuming and a hassle.
FACT: Enrolling in direct deposit, whether you receive a paycheck or a government benefit, is usually fast and easy. If you receive Social Security or Supplemental Security Income (SSI), you can sign up for direct deposit in less than 5 minutes by calling the Go Direct toll-free helpline at 800.333.1795, enrolling online at www.GoDirect.org, or signing up at your local bank or credit union.

MYTH: People who don’t have a bank account should not consider direct deposit.
FACT: There are options available if you don’t have a bank account. Call the U.S. Treasury’s Go Direct toll-free helpline at 800.333.1795 for help finding a financial institution that offers low or no-cost accounts. Learn more about how to have your funds deposited right onto your Cash Solution Card.

MYTH: If you use direct deposit, you will not know when your money is in your account.
FACT: You can be sure your money is in your account by the time your bank opens on payment day. Paper checks can get lost or stolen, but with direct deposit your money is in your account on time, every time. Some accounts offer text messaging when your direct deposit is made.

MYTH: Direct deposit does not really save time because the check still must be mailed to the bank.
FACT: With direct deposit, your federal benefit payment is electronically transferred to your bank account. The payment process is completely paperless.

MYTH: Direct deposit is not a trustworthy way to receive federal benefit payments.
FACT: Direct deposit is completely reliable.

MYTH: Direct deposit is not as safe as receiving a check because it is sent over the Internet.
FACT: Direct deposit works by transferring funds directly into your account through a highly secure electronic banking system – not the Internet. It is the same system used by the world’s leading financial institutions.

MYTH: Direct deposit is expensive.
FACT: Most banks and credit unions do not charge you to sign up for direct deposit. In fact, they may waive your monthly checking account fee if you have direct deposit.