Direct deposit is the fastest and most convenient way to make regular deposits into your bank account. With direct deposit you can have your paycheck—or any other money that you receive on a regularly scheduled basis (like interest from investments or social security benefits)—deposited right into your account.
When you decide to sign-up for direct deposit, you’ll no longer receive a “live” paper check from your employer. Instead the money is sent electronically to your bank account and the funds become available to you early on the day of the payment date. So, not only is it easy, using direct deposit also saves you time and it is safe and secure.
Advantages of direct deposit
- Payment goes into your account the same day the check is issued, so you won’t have to rush to the bank or to an ATM to deposit your check.
- Some banks offer free or low-cost checking if you have direct deposit.
- Direct deposit eliminates the need for paper checks, so there’s no need to worry about losing or forgetting to make a deposit
Direct deposit can also be a good way to get in the habit of saving. You can have your money automatically divided up among multiple accounts with direct deposit. So, for example, you might want to place $100 from each paycheck into your savings account, and have the rest deposited into your checking account.
You can get direct deposit by asking your employer or the agency that provides your benefits to sign you up. You will need to provide them with your bank account number and routing number, which are both located on the bottom of your checks. Typically, the direct deposit form will ask that you provide a voided check to ensure they set-up the deposit to the correct account.
Be sure to write “VOID” across the face of the check and attach it to the direct deposit form. Don’t sign the voided check—it’s not necessary.
This site is for education purposes. The material provided on this site is not intended to provide legal, investment, or financial advice or to indicate the availability or suitability of any Capital One product or service to your unique circumstances. For specific advice about your unique circumstances, you may wish to consult a qualified professional.