In the modern age, there are more ways to transfer monetary currency than ever before. Long gone are the days where cash was handed from person to person, or, moved over long distances with the help of stagecoaches.
Instead of waiting days or even weeks for funds, today’s transactions take place within a matter of days or hours. Today, a direct deposit or wire transfer are just two of the ways to send funds electronically.
Each method has distinct advantages and disadvantages. Therefore, it’s important to be familiar with all your options so that you don’t spend any more than you have to. With this in mind, below is a guide to these relocation methods.
Direct Deposits Vs Wire Transfers: Pros & Cons
Many employers pay their workers via the direct deposit process. In fact, many tax refunds, welfare, and other government initiatives are also carried out in this exact manner.
As a form of electronic money transfer, it’s extremely environmentally friendly as it does away with paper checks. It’s also convenient as it’s carried out almost instantaneously with no need for a trip to the bank.
This type of payment is also foolproof as it cannot be lost in the mail, misplaced in the home or stolen. Additionally, it offers a level of convenience to those who are indisposed, sick or on holiday when monetary currency is due to change hands.
There is a sense of flexibility and reliability about this typically free option too. Deposits can be automatically divided between a checking or saving account. It’s worth noting that many institutions make funds available on the same day or the next business day.
As a gesture of good faith, many banks will also offer customers who receive regular direct deposits higher levels of services or eligibility for certain accounts.
Wire transfers are also electronic and are often used only occasionally. Typically, they are implemented in instances where access to the money is needed within a matter of hours and not one to two business days.
Generally used between banks and/or credit unions, this option helps one person send monetary currency to another, or works to facilitate an exchange between an organization or company and a person.
A common use of this function is during real estate closings. This is because this process will involve the buyer’s money being wired into the bank account of the individual or persons selling the house.
It’s important to note that this will cost money. Fees charged vary by institution, however, both the sender and recipient are typically charged. Common fees are about $25 to send and about $15 to receive.
Transferring Money in the Modern Age
There are a variety of reasons when it comes to understanding why a business or individual would need to send funds. These reasons could be anything from fulfilling payroll requirements to paying personal bills.
When deciding on what means to use, it’s important to consider the options and how they can best suit your needs. Another factor to consider is looking into remittance services that will not cost you any more than you intend on reasonably spending.
In the electronic age, every new invention is all about ease of service. With this in mind, functionality and ease of use should be front of mind. This way, finances won’t consume all of your time.
While understanding the difference between the wiring and direct deposits and what your bank can accommodate may take a bit of research, it is well worth it. Especially when down the line, sending funds to pay bills or employees can become as easy as pressing a button.
Considering Your Options
These days, there are more electronic payment methods available than ever before. You can send money via established services or even apps. The trick to choosing the right avenue for you is to consider the pros and cons and how they may affect your personal or professional finances.
Payroll services are hard enough as it is without adding in complex remittance processes. So, in order to stay on top of your professional finances, understand what the best practice is and how it can be implemented. This way, payment, productivity, and reliability can be streamlined.
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Author: Luke Fitzpatrick