Should I Get My Paycheck Through Direct Deposit Or A Pay Card?

Direct Deposit means your paycheck is deposited straight into your checking account.

A Pay Card works a lot like prepaid gift cards.

Here’s what you need to know about your two options:

Direct Deposit

• Keep every dollar — There are no fees for putting money into or keeping money in your account.

• One-step savings — Have your credit union distribute a portion of your salary into your savings account(s) in addition to your checking each payday.

Pay Cards

• Attached fees — There can be fees attached to every swipe of your pay card. Withdrawing your cash via ATM will cost money, too.

• Budgeting blockage — A pay card can feel like cash, and therefore get spent quicker.

• Saving challenges — You’re less likely to take the extra step of withdrawing the money from your card for depositing into savings.