According to a survey, current seniors have no problem using Direct Deposit but baby-boomers—the next generation of retirees—do not trust the technology. Of the 59% of baby-boomers who use the service, 21% say they prefer banks, 19% say they don’t trust Direct Deposit, and 18% say they like receiving a paper check.
Producing and sending paper checks cost companies and organizations more than using Direct Deposit, and as administrative expenses rise as baby-boomers retire, customers (for example, social security recipients) will see those costs passed onto them.
Bankrate offers a primer on setting up Direct Deposit with an employer.
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Interesting post. I’m a boomer and I can’t remember the last paper paycheck I saw—it’s been years. I also don’t remember ever having any problems with direct deposit.
I love direct deposit. It saves me checking fees, time, and the money is available at the first seconds of pay day. It is also great for saving. You can have direct deposit place funds directly into a savings account, that way you never see the money in your checking account.
I LOVE direct deposit. I haven’t had a paper check in years (other than for expenses). I’m still perplexed when people tell me they don’t use it.