Direct deposit
The electronic deposit of funds straight into a bank account over the ACH network, instead of a paper check — most commonly used for payroll, but also for tax refunds and government benefits. To enroll, you give the payer a signed direct deposit authorization with your routing number, account number, and account type. Changes are not instant: payroll often locks a cycle ahead of payday, so a new authorization may not take effect until the next pay period.
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How to set up direct deposit at a new job
To set up direct deposit at a new job, give payroll a signed direct deposit authorization form with your bank's routing number, account number, and account type, usually backed by a voided check or bank letter. Your first paycheck may still be paper while payroll verifies the account; after that, deposits land automatically each payday.
How to change or cancel direct deposit when switching banks
To change direct deposit when switching banks, set up the new authorization first, then cancel the old one. Keep the old account open and funded until a full paycheck lands in the new one — payroll changes take one to two pay cycles, so the old account is your safety net during the gap.
How to prove you have direct deposit set up
To prove you have direct deposit set up, show a recent pay stub, a bank statement listing the deposit, or a verification letter naming the payer, your account, and the deposit status. For a bank bonus, it usually must be a “qualifying direct deposit” — regular ACH income like a paycheck, pension, or benefit.