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You may be used to receiving a check on payday, then going to a bank to deposit the money into your account. But direct deposit puts the money straight into your account, so you don't have to keep track of a check or find time to visit a bank or ATM.
Direct deposit is an electronic funds transfer (EFT), meaning money can be transferred from one account to another. With direct deposit, you can put your employees' paychecks directly into their checking or savings account at their financial institution.
Set up direct depositAsk for a copy of your employer's direct deposit signup form, or download the U.S. Bank Direct Deposit Authorization Form (PDF).Provide your U.S. Bank deposit account type (checking or savings), account number and routing number, and other required information.More items...
Direct deposit authorization forms authorize employers to send money directly into an individual's bank account. In times past, employers would print out and distribute physical checks on pay day for each employee to deposit into their bank accounts themselves.
No. To set up direct deposit, you need to give your employer your bank account and routing numberand typically, you don't have the right to give out somebody else's bank account information.
How to Write a Direct Deposit Authorization FormCompany or individual you are authorizing to make deposits to your account.Your account type (checking or savings) and number.Name and address of your bank.Your 9-digit routing number.The percentage to be deposited into the account.Any additional bank information.More items...
In order for an employer to deposit your pay directly into your account, they need to have your authorization to do so. In addition to getting permission, the employer also collects information like your bank account number and routing number.
How to Set Up Direct DepositGet a direct deposit form from your employer.Fill in account information.Confirm the deposit amount.Attach a voided check or deposit slip, if required.Submit the form.
One of the biggest benefits of direct deposit is that it happens very quickly, usually one to three days but sometimes up to five business days. This varies depending on who is actually sending the funds and may even get faster in the future. (Learn more about transferring money from one bank to another.)