Okay, let me state from the start, I'm NOT a fan of direct deposit. I much prefer paper checks or, where applicable, cash.
But, at our stage of life, things are changing, and we have no choice but to accept direct deposit for SS, DH's pension. I've switched my annuity to direct deposit, because those checks (only those????) kept getting 'lost in the mail'.
I am curious about others' experiences--good and bad--with direct deposit.
Call me paranoid, but I absolutely won't have my DD payments made to a bank where I do the bulk of my banking. I opened a checking account at a different bank solely for the purpose of accepting our DD. We have no other accounts there, and I keep just enough in that account to keep it open. As soon as our DD's come in, I write a check and transfer them to the 'other' bank.
Why? My aunt had her pension checks direct deposited. When she died, I called the pension company immediately, told them she died and the date. The idiot clerk I talked to put the previous year's date (it was January) on the form. A few weeks later, I got a bank statement and to my surprise found that the pension company had--without my knowlege or consent--reached into her account and taken out many thousands of $$$. When you give an agency the right to put money INTO your account, you apparently also give them the right to take money OUT of it. This was purely a mistake on the part of the pension company, but it was a HUGE hassle to sort out, and took me a couple of months before all the money was back where it belonged!!! At that point in time, dealing with my aunt's death, planning her funeral and memorial service, clearing out her apt, etc, I really didn't need the extra headache. Luckily, no checks I'd written bounced. Anyway, that's what's behind my thinking for keeping DD away from the bulk of our savings--I'm hoping, this way, if there ever is a question, they'd have to come to me, rather than just helping themselves to my money without telling me.
I totally acknowledge that I'm being super cautious--perhaps a bit over the top so--but it's the only way I can think of to try to keep one of the half dozen or so companies who now have access to my bank account, from helping themselves to my money, without contacting me first.
So--who's satisfied with DD? who's had problems? how did you solve them?