Direct Deposit

Banking & Credit

Direct deposit is the electronic deposit of paychecks, government benefits, or other payments directly into your bank account via ACH. The IRS strongly prefers direct deposit for tax refunds (faster, cheaper, more secure than paper checks). Employers benefit too — no check printing, no lost-check claims. To set up, give your employer your routing number, account number, and account type (checking/savings). You can usually split direct deposit across multiple accounts — a common tactic is sending a fixed amount to savings or a brokerage automatically each payday to enforce 'pay yourself first.'