How to set up direct deposit at a new job

For many people, the days of driving to the bank to cash a paper paycheck are a thing of the past. Direct deposit is a secure way to receive a paycheck on—or even before—payday, right into your bank account.

Setting up direct deposit when starting a new job is generally easy and convenient. And with early paycheck from Capital One, employees can get paid even sooner. Learn more about setting up direct deposit at a new job.

Key takeaways

  • Direct deposit is a safe way for a recipient to have payments deposited electronically into their bank account.
  • Many employers offer direct deposit—instead of paper checks—to pay employees.
  • Setting up direct deposit at a new job is typically simple and requires sharing bank information with the employer.
  • Direct deposit has several benefits, like being convenient, fast and secure.

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What is direct deposit?

Direct deposit is a secure, fast way for a recipient to receive funds straight into their bank account electronically.

Many employers offer—or even require—direct deposit as a way to pay employees. If you’re starting a new job, you might find it more convenient and secure to set up direct deposit instead of opting for paper checks.

Your job isn’t the only place that might offer direct deposit. It can also be used for things like tax refunds, child support and Social Security benefits.

How does direct deposit work?

Direct deposit begins with a depositor—in the case of a new job, an employer—collecting information about the recipient’s bank account. The information is used for automated clearing house (ACH) transfers, which process funds between financial institutions automatically.

Once the funds are sent to the recipient’s bank, the bank typically releases the funds on a set date—with no action needed from the recipient.

Direct deposit is generally inexpensive or free of charge. And it’s usually faster and more secure than paper checks or cash.

An example of direct deposit is an employee paycheck that’s sent directly from the employer to the employee’s bank account. With this method, there’s no risk of delayed or lost paper checks. And employers can save money on printing, postage and administrative expenses.

How to set up direct deposit

If you’re starting a new job or simply want to update how you get paid, setting up direct deposit can be simple. While the process may vary, here are a few steps you’ll typically take.

Get a direct deposit form from your employer

Companies may have different ways of collecting your bank account information, but you can start by requesting a form or other enrollment method. You might also ask if your employer can split the deposit into multiple accounts.

Fill in your account and banking information

Your employer will need your bank name and address, account number, account type and routing number to know where to deposit your paycheck. They might even ask for a voided check to verify your information.

Keep an eye out for your payment

It might take a few days or weeks to set up direct deposit, so it’s a good idea to ask your employer about the timing. You can keep an eye on your bank account when it’s time to receive your next paycheck. Once the payment shows up in your account, there’s no more action you need to take.

A person gets access to their paycheck instantly on payday.

Benefits of direct deposit

Direct deposit is more than just a way to save paper. Check out a few advantages of direct deposit.


When someone is receiving money, they can bypass paper checks and get the funds straight into a bank account. Direct deposit is electronic and automatic.

Employers can also often split the deposit into multiple accounts for an employee. And there are typically no fees to receive the money. Some banks even offer perks to direct deposit users, like waiving maintenance fees and offering higher interest rates on the account.


Because direct deposit moves money digitally, there’s less risk of interference. There’s no paper check to be stolen, lost or forged. In fact, direct deposit can be one of the safest types of transactions.

Learn more about how to keep your account information safe.

Instant access on payday

With direct deposit, the depositor generally sends money to the bank before payday. That way, the bank can release the funds into the bank account on the set date. The recipient can then immediately access or withdraw their money.

This is different from depositing a paper check, where the recipient’s bank has to first confirm the amount of funds deposited—and whether the sender has enough money to cover it—with the sender’s bank. This process can take longer than with direct deposit.

How long does direct deposit take?

When a direct deposit has been sent, it processes automatically through ACH right into the recipient’s bank account. And once the funds are in the bank account, the recipient can access their money quickly and easily.

For employees, paychecks will typically show up in their bank account on a set payday. But early paycheck from Capital One lets employees get paid up to two days sooner. It’s a free, automatic feature for Capital One checking accounts.

Direct deposit in a nutshell

Starting a new job can be overwhelming—but getting paid doesn’t have to be. New employees can ask their employers about direct deposit options to get their paychecks more quickly and securely.

Not sure how to manage all that money at your fingertips? Check out these seven money management tips to reduce anxiety about your financial goals.

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