The best thing about work? Getting paid. But the process of getting to a bank branch, filling out a deposit slip, and standing in line to deposit your paycheck? It can be a drag.
That’s why the banking gods created direct deposit.
What is direct deposit?
Direct deposit is a direct transfer from one bank account to another. Typically, direct deposit involves an employer paying an employee via (you got it) direct deposit, forgoing the need for a physical paper paycheck.
Outside of your paycheck, direct deposit can also be used in other ways. The IRS, for example, can use direct deposit to transfer tax refunds to filers’ bank accounts.
Many organizations use direct deposit as it eliminates the need to print a physical check, and reduces risk in that a physical check can be lost or stolen in the mail. Payments can also be made or received much faster, and an electronic record is created for transactions, allowing all parties involved to track funds.
How do you set up direct deposit?
Employees who wish to set up direct deposit with their employers in order to receive their paychecks generally have to give the employers their banking information. That includes the name of your bank, the bank’s routing number, account numbers, account types (saving or checking), etc.
From there, the process takes anywhere from a few days to a couple of weeks—it largely depends on the institutions involved.
Some banks allow for employees to receive their paychecks up to two days early (such as ASAP Direct Deposit™ here at Stash)
Direct deposit with Stash
You can get access to your pay up to two days early with ASAP Direct Deposit™. By setting up direct deposit with your employer, it makes it easy to keep your Stash account funded.
The first step? Sign up for a Stash Invest account. All you need is $5.
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Early access to your direct deposit depends on deposit verification and when the bank gets notice from your employer, and may vary from pay period to pay period.
Account opening subject to Green Dot Bank’s approval.