How to Set Up Direct Deposit

Direct deposit pays you electronically through the ACH network instead of by paper check. It is faster, there is nothing to deposit, and the money must be available the next business day at the latest.

Setting it up takes about five minutes. The wait afterwards is the longer part.

What you need

• Your routing number — nine digits, the ACH one rather than the wire one. Where to find it.
• Your account number — where to find it.
• The account type — checking or savings.
• Proof of the account — a voided check, a direct deposit form from your bank, or a bank letter. Increasingly the employer's portal just asks for the numbers.

Setting it up

1. Ask payroll what they accept. Some require a voided check, some have their own form, most now use a self-service portal. This determines everything that follows.
2. Get your numbers from the bank, not from memory. Copy them from the app, including any leading zeros.
3. Complete the form or portal entry. Check the account type field — money sent to a checking number marked as savings can be rejected.
4. Submit and keep a copy.
5. Watch for the prenote. Most employers send a zero-dollar test transaction first, which takes a few business days to confirm.
6. Check the first live payment landed before you cancel anything else.

How long it takes

Assume you will get one more paper check. Do not close the old account, and do not count on the first payday after signup being electronic. If your employer is mid-cycle when you submit, the change usually takes effect the cycle after.

Splitting the deposit

This is the part most people never use, and it is the most valuable thing on this page.

Most payroll systems let you divide a paycheck across two or more accounts — either a fixed dollar amount or a percentage. Send a set amount to savings and the remainder to checking, and you have automatic saving that requires no discipline, because the money never appears in the spending account at all.

Ask payroll for a second account line on the form. If the system only accepts one account, set up an automatic transfer at your bank for the day after payday instead.

If it does not arrive

• Check the date first. Payday falling on a weekend or bank holiday pushes the deposit to the next business day.
• Verify the numbers against your app. A transposed digit is the most common cause.
• Ask payroll whether it was sent and on what date. If they have a trace number, your bank can follow it.
• If the money went to the wrong account, tell both your bank and payroll immediately. Recovery is possible but gets harder the longer it sits.

Related

For the proof-of-account document, see how to void a check.

Common questions

What do I need to set up direct deposit?

Your routing number, your account number, the account type, and usually either a voided check or a direct deposit form from your bank.

How long does direct deposit take to start?

Typically one to two pay cycles. Most employers run a prenote — a zero-dollar test transaction — which takes a few business days to confirm before live payments begin.

Can I split my paycheck between two accounts?

Usually yes. Most payroll systems allow a fixed amount or a percentage to go to a second account, which is the simplest automatic-savings method there is.

Do I need a voided check?

Not always. A direct deposit form from your bank, a bank letter, or typing the numbers into the employer’s portal all work. Ask which they accept.

Is direct deposit faster than a paper check?

Yes. Funds must be available the next business day at the latest, and most employers release them on payday morning with no hold at all.