4 Reasons to Love Direct Deposit

Personal finance   •  February 24, 2022  •  5 mins read
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Did you know that if you have an Flare Account® you can have your payroll or government checks deposited directly to your account? With your account, you can get access to your money with a companion debit card or ATM cash withdrawals.

 

As far as we’re concerned, direct deposit is one of the most convenient banking tools to take advantage of. Once the technology became widely available, it didn’t make sense for people to deposit their paychecks or government benefits in any other way. Direct deposit is now a convenient way to get paid.

 

If you don’t utilize direct deposit for your government benefits or paychecks, we encourage you to get set up for direct deposit by signing up for a Flare Account®.1 Here are four reasons to love direct deposit:

 

1. Direct Deposit is Easy to Set Up- Depending on Your Employer

Setting up direct deposit is as routine as completing a form. All you need are two numbers: your account number and your financial institution’s routing number. Consumers who elect for direct deposit can find this information in the Online Account Center.

 

To set up direct deposit with your employer, touch base with the HR department. They will ask you for your account and routing numbers. Just give them the numbers we provide. Use the same process to sign up your government benefits for direct deposit.

 

2. You Get Paid Faster than a Paper Check

At many banks, even if you arrange to direct deposit your paycheck or benefits check, the money you are owed ends up in your account on the very day you get paid. With the Flare Account, you can get paid up to 2 days faster!2

 

Compare that to receiving paper checks, where your check must be taken to the bank or check-cashing store. If you can’t get there on the same day you receive your check, you’re out of luck. Furthermore, settlement from your employer’s bank to yours can take a few days when you deposit a check, which means that you won’t have access to your pay until the check clears.

 

3. Direct Deposit is Convenient

Not having to travel to the bank or check-cashing store to get your money frees up time you could spend doing other things. As such, it’s easy to make the case that direct deposit is convenient. You get paid without having to jump through hoops. Just sign up for direct deposit and then wait for your money to arrive on the scheduled date.

 

4. It is Safer Than Carrying Cash or Cashing Checks

Direct deposit is also a safer way to get paid. Because your money goes right from the payor into your account, there are no worries about your check being lost or stolen in the mail. There are no worries about misplacing your check before you get to the bank.

 

Deposit Offers Additional Benefits

It is not uncommon for financial institutions to offer extra benefits to incentivize people to use direct deposit. For example, qualifying direct deposit activity allows you to withdraw up to $400 in cash every day3 from your Flare Account with no fees at participating ACE locations. Signing up for qualifying direct deposit also allows you to open an optional savings account and earn up to 6.00% Annual Percentage Yield (APY) on your deposits.4

 

Direct deposit really is a wonderful thing. If you don’t yet take advantage of it, what’s holding you back? Make it happen with the Flare Account®.1

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What is APY and What Does It Mean?
Want to earn a little extra money in your bank account? Your account’s Annual Percentage Yield (APY) may be able to help.

1. IMPORTANT INFORMATION FOR OPENING A NEW DEPOSIT ACCOUNT: To help the federal government fight the funding of terrorism and money laundering activities, the USA PATRIOT Act requires us to obtain, verify, and record information that identifies each person who opens an Account. WHAT THIS MEANS FOR YOU: When you open an Account, we will ask for your name, street address, date of birth, and government ID number. We may also ask to see a copy of your driver’s license or other documents at any time. All Accounts are opened subject to our ability to verify your identity by requiring acceptable types of identification. We may validate the information you provide to us to ensure we have a reasonable belief of your identity. If we are not able to verify your identity to our satisfaction, we will not open your Account or we may close the Account if it was previously funded. Your Account is subject to fraud prevention restrictions at any time, with or without notice.

 

2. Faster funding claim is based on a comparison of MetaBank's policy of making funds available upon receipt of payment instruction versus the typical banking practice of posting funds at settlement. Fraud prevention restrictions may delay availability of funds with or without notice. Early availability of funds requires payor’s support of direct deposit and is subject to the timing of payor’s payment instruction.

 

3. Make up to $400 in fee-free cash withdrawals per day from your ACE Flare Account by MetaBank by using your debit card at participating ACE Cash Express locations. $400 total is calculated based on all withdrawals performed at all ACE Cash Express locations visited in a day. A direct deposit (no dollar minimum) to the account within the immediately preceding thirty-five (35) days is required. See store for details. Although this feature is available at no additional charge with qualifying direct deposit, certain other transaction fees and costs, terms, and conditions are associated with the use of this Account. Offer subject to change. This optional offer is not a MetaBank®, N.A., or Visa offer nor does MetaBank, N.A., or Visa endorse this offer.

 

4. The optional Savings Account linked to your Flare Account is made available to Accountholders through MetaBank, N.A., Member FDIC. Interest is calculated on the Average Daily Balance(s) of the Savings Account and is paid quarterly.

 

   • If the Average Daily Balance is $2,000.00 or less, the interest rate paid on the entire balance will be 5.87% with an annual percentage yield (APY) of 6.00%.

 

  • If the Average Daily Balance is more than $2,000.00, the interest rate paid on the portion of the Average Daily Balance which exceeds $2,000.00 will be 0.49% with an APY of 0.50%, and the interest paid on the portion of the Average Daily Balance which is $2,000.00 or less will be 5.87%. The APY for this tier will range from 6.00% to 0.60%, depending on the balance in the account.

 

The interest rates and APYs of each tier may change. The APYs were accurate as of 3/1/2022. No minimum balance to open Savings Account or obtain the yield(s). However, you must receive direct deposit(s) totaling at least $500 within one (1) calendar month to be eligible to open a Savings Account. Savings Account funds are withdrawn through the Flare Account (maximum 6 such transfers per calendar month) and transaction fees could reduce the interest earned on the Savings Account. Funds on deposit are FDIC insured through MetaBank, N.A. For purposes of FDIC coverage, all funds held on deposit by you at MetaBank, N.A. will be aggregated up to the coverage limit, currently $250,000.00.

 

The ACE Flare® Account is a deposit account established by MetaBank®, National Association, Member FDIC. Netspend is a service provider to MetaBank, N.A. Certain products and services may be licensed under U.S. Patent Nos. 6,000,608 and 6,189,787.

 

This retailer engages in money transmission services as an authorized delegate of Netspend Corporation (NMLS #932678). State licenses, disclosures, and complaint information may be found here www.netspend.com/help/licenses.

 

© 2022 Netspend Corporation. All rights reserved worldwide. Netspend is the federally registered U.S. service mark of Netspend Corporation. All other trademarks and service marks belong to their owners.

 

The Flare Account® is a demand deposit account established by Pathward, National Association, Member FDIC, and the Flare Account Debit Card is issued by Pathward, N.A., pursuant to a license from Visa U.S.A. Inc. Netspend is a service provider to Pathward, N.A. Certain products and services may be licensed under U.S. Patent Nos. 6,000,608 and 6,189,787.