May has a lot going on, what with Mother’s Day, the NHL playoffs, and Memorial Day. May is also Direct Deposit Month, and while not as beloved as mom, it’s important in its own right.
Most Americans know Direct Deposit as the best way to get paid. Your wages are in your bank or credit union account right on time, without any holds, and eliminating the hassle of picking up a check, depositing it, and waiting for the funds to clear.
But there’s a lot more to celebrate in Direct Deposit Month. If you’re lucky enough to be getting a tax refund you might have already collected thanks to Direct Deposit, which the IRS calls “the best and fastest way to get your refund” used by eight out of 10 taxpayers.
The IRS even offers a feature called “split refund” which allows you to distribute your refund among as many as three accounts. Maybe put some of it into rainy day savings, some in a college fund, and the rest toward everyday expenses. It’s similar to Split Deposit, which allows you to divide your wages among various accounts.
Direct Deposit also comes through for Social Security recipients. Every month, 99% of them are receiving benefits electronically. Veterans use Direct Deposit to receive pensions, disability compensation and education benefits.
Finally, when COVID-19 hit, and many Americans needed a helping hand, Direct Deposit was there. It quickly and safely delivered nearly eight-in-10 economic impact payments, and 86% of the July 2021 Advance Child Tax Credit payments.
So, this May, along with enjoying a three-day weekend to kick off summer, remember that Direct Deposit is quietly working for you, even when you’re off work.