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.
Updated July 16, 2010 and originally published December 27, 2005. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.