Providing Bank Information for Direct Deposit
  • 27 Feb 2024
  • 1 Minute to read
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Providing Bank Information for Direct Deposit

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Article Summary

Abstract

Direct Deposit is a banking option that allows the transfer of funds without the use of paper checks.

  • By enrolling in direct deposit, you are authorizing the employer to electronically deposit your net pay each payday directly to a bank account.

  • Establishing direct deposit of your paycheck requires you to go through your employer, who has the paperwork needed to set it up.

Benefits of Using Direct Deposit

  • There are no checks to be lost or stolen.

  • Payments reach your account the day the check is issued, even if you are out of town, sick, or unable to get to your financial institution.

  • Many banks offer free or inexpensive checking for customers with direct deposit because it saves them the cost of processing paper checks.

  • Direct deposit can help you avoid bouncing checks because the deposit is direct and on time.

  • It can save you trips to the bank and help you avoid long lines at tellers or ATMs.

  • The US federal government and many employers will deposit your check a day early if the regular payday falls on a holiday.

What You Need In Order to Set Up Direct Deposit

  • Voided check from your checkbook containing your bank's name, routing number (number that identifies your bank), and your account number.

  • Identification number (such as a US Social Security number).

  1. Enter the name of your bank in the Bank Name field. If you do not have a bank account at the time of joining the organization, fill in this information after you create an account.

  2. Enter your bank routing number in the Bank Routing Number field. The routing number is the first set of numbers on your check. The routing number is followed by your account number and the number of the check itself.

  3. Enter your bank account number in the Bank Account field. Your paycheck will be deposited into this account.

  4. Select the Save and Continue button.