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Grex > Agora56 > #18: Paper checks or Direct Deposit-- which do you prefer? | |
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richard
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Paper checks or Direct Deposit-- which do you prefer?
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Dec 29 21:17 UTC 2005 |
Interesting wire story:
"NEW YORK (AP) - A new survey suggests that baby boomers are more
reluctant to embrace direct deposit than their parents, an attitude
that could force the government to continue paying millions to mail
checks. The study, underwritten by the Treasury Department and the
Federal Reserve banks, found that 59 percent of baby boomers - those
born between 1946 and 1964 - take advantage of direct deposit of
paychecks and government checks, compared with 72 percent of those 65
and older."
Interesting that younger people are more wary of direct deposit than
older people. Which method of getting paid do you prefer? Direct
Deposit or the good ol'fashioned paper checks. I guess some people
just dont FEEL like they're getting paid unless they see a paper
check.
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| 67 responses total. |
tod
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response 1 of 67:
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Dec 29 21:22 UTC 2005 |
CASH
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jadecat
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response 2 of 67:
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Dec 29 21:34 UTC 2005 |
This may sound bad but... perhaps more people over 65 have direct
deposit because they don't drive. Thus it's easier for them to have
their money deposited directly rather than having to try to find someone
to take them to the bank.
Whereas baby boomers are still mobile, or at least have a better
liklihood of driving.
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tod
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response 3 of 67:
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Dec 29 21:38 UTC 2005 |
Or maybe baby boomers are too stupid to realize what compound daily interest
is.
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marcvh
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response 4 of 67:
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Dec 29 21:55 UTC 2005 |
Most people with direct deposit have their checks directly deposited into
checking accounts, which either pay no interest or pay something like 0.25%
per year.
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jadecat
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response 5 of 67:
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Dec 29 21:59 UTC 2005 |
Depends if they have their money in credit unions or not.
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klg
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response 6 of 67:
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Dec 29 22:01 UTC 2005 |
When you get survey results reported like that (omitting the wording of
the questions that were asked) you often have strange results. And the
fools always rush in to believe them.
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marcvh
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response 7 of 67:
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Dec 29 22:33 UTC 2005 |
Re #5: true. Credit unions pay more like 0.5%, or at least that's what
the one I'm eligible for pays. If you're getting a thousand dollar
check, and direct deposit gets you the money 4 days sooner, then you
could earn an extra 5 cents, or 3-4 cents after taxes.
I agree with klg (!) on this one. There are tons of possible explanations
other than "boomers don't like direct deposit."
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bhelliom
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response 8 of 67:
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Dec 29 22:41 UTC 2005 |
Perhaps it's the impersonal nature of it? We're quickly becoming a
society where you can spend a great portion of your day never
intereacting with a real person.
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naftee
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response 9 of 67:
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Dec 29 22:42 UTC 2005 |
i used to like cheques better.
now i believe they're equivalent since bank statements are available online.
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naftee
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response 10 of 67:
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Dec 29 22:42 UTC 2005 |
slip !
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richard
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response 11 of 67:
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Dec 29 22:48 UTC 2005 |
Another reason might be that not all young folks have checking
accounts. You need one for direct deposit. For some, a checking
account at a bank is dreadfully old school, like having a regular (non-
cell) phone line at home. Some kids dont have checking accounts, they
just have paypal accounts and etrade accounts. That doesnt make direct
deposit all that practical.
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edina
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response 12 of 67:
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Dec 29 22:50 UTC 2005 |
Wait a second - do you mean "kids" or "baby boomers"? Because who doesn't
have a checking account?
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gull
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response 13 of 67:
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Dec 29 23:07 UTC 2005 |
I like direct deposit for convenience. It also means my payment gets
in at the head of the line. I've liked that ever since I waited a few
extra days before cashing a paycheck and it bounced.
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marcvh
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response 14 of 67:
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Dec 29 23:08 UTC 2005 |
Maybe some boomers are housewives or otherwise don't receive any form of
regular check, and therefore don't use direct deposit. Or maybe people
are more willing to accept direct deposit from the government (which
most over-65 people get checks from) rather than from their employer,
presuming the government is more trustworthy.
I knew a guy whose prior employer had a payroll screwup where they
processed the payroll with negative numbers -- thus, on payday, every
employee got his paycheck amount *deducted* from his checking account.
Much confusion and bounced checks and other problems ensued.
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gull
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response 15 of 67:
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Dec 29 23:09 UTC 2005 |
One interesting question might be how many people get their *tax
refunds* direct deposited. I wonder if people have different opinions
about direct deposit by the government vs. direct deposit by an
employer.
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richard
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response 16 of 67:
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Dec 29 23:12 UTC 2005 |
This response has been erased.
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marcvh
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response 17 of 67:
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Dec 29 23:12 UTC 2005 |
Probably, but it might be confounded by the distinction between direct
deposit for a one-time payment and a recurring one, and the fact that
with tax refunds there can be a significant time difference whereas
with private payrolls you normally get the check or deposit on the same
day.
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richard
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response 18 of 67:
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Dec 29 23:12 UTC 2005 |
re #15 what if your tax "refund", once the IRS did their own math,
turned out to be a "tax owed" You have given them permission to make
the transaction, whatever the transaction is negative or positive, to
your checking account.
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khamsun
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response 19 of 67:
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Dec 29 23:54 UTC 2005 |
(interesting detail in the ethnological study of USA: they still do pay
with paper checks...)
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gull
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response 20 of 67:
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Dec 30 00:00 UTC 2005 |
Re resp:18: I don't think you can direct debit from your account if you
owe tax, but I could be wrong.
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nharmon
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response 21 of 67:
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Dec 30 01:58 UTC 2005 |
Re #20: You can pay taxes through whats called an ACH debit. However,
agreeing to have your refund direct deposited is not the same as
authorizing the government to debit your bank account.
The point is moot because upon completing your return, you should
already be aware if you owe taxes or are due a refund. If you made a
mistake on your return, the IRS will do one of two things: If the
mistake is major and indicates deliberate fraud, you will be audited. If
the mistake is minor, the IRS will probably just ask that you file a
1040X (Amended Tax Return). Either way, you will not have to pay the tax
until you complete the 1040X or the audit is completed. However, at that
time you might also be subject to penalties and interest.
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charcat
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response 22 of 67:
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Dec 30 02:04 UTC 2005 |
as for money coming in to my account I probably prefer direct deposit
but as far as paying my bills I like to write checks the old fashioned
way, no reason, just the way I feel.
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rcurl
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response 23 of 67:
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Dec 30 05:26 UTC 2005 |
I've taken advantage of direct deposit whenever it is available. It saves
time and efforts and gets the money deposited as soon as is possible. I
can't imagine why anyone would not want direct deposit (unless they are
paid in cash or do not have an account). No one that has responded so far
as given a reason for not having direct deposit other than those two.
On the other hand, I decline to allow any automatic direct payments from
my account. It is one thing allowing someone to pour money into my account
and entirely another giving them the power to ladel it out. I use online
banking to set up all payments other than a few for which I write checks
(the latter usually being recipients with whom I do not have account
numbers).
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keesan
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response 24 of 67:
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Dec 30 05:39 UTC 2005 |
If I make an arithmetic error on my taxes they either send a refund or ask
for more money, with no need to file any amended return. I get my tax refunds
direct-deposited. I don't get paychecks, but if i did and got them direct
deposited I would not need to leave $600 in my checking account not getting
any interest, just $100. If I could get 3% somewhere else (after taxes) that
would make me $18/year for direct depositing. But it would also put all my
earnings into the bank instead of a mutual fund.
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