Why do banks love direct deposit so much?
November 20, 2012 8:33 AM Subscribe
Why do banks require direct deposit to waive monthly fees?
posted by kristi to Work & Money (13 answers total) 1 user marked this as a favorite
I keep seeing info about bank accounts where monthly service fees are waived if you do a monthly direct deposit.
I'm self-employed, so I don't have a paycheck I can set up for monthly direct deposit. However, it appears that for many banks, ANY direct deposit will do - so a monthly automatic transfer of $25 from some other account qualifies (even one at the same bank!).
This appears to be true of credit unions, too.
But why is this? It seems like extra work for no obvious reason. Of course I understand that - if you're getting a regular paycheck anyway - it's less work for them to process it via direct deposit instead of in person with a teller. But if you're NOT getting regular direct-depositable checks, why do they push this?