StashLearn
Get the app
Get the app

Join millions of investors on Stash

Investing, simplified

Start today with as little as $5
Get the app
Teach Me

Everything You Ever Wanted to Know About Direct Deposit

March 12, 2019

1 min read

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.

Learn more about banking

The Stash Way

Start now

By Sam Becker

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.

Next for you
Stash Debit: Banking For Investors

Investment Profile

Bonds Worldwide

An International Bond ETF on Stash

Learn more
Explore more articlesChoose a topic to learn more about
social media budgeting pop culture Careers market news
Disclaimers

This material has been distributed for informational and educational purposes only, represents an assessment of the market environment as of the date of publication, is subject to change without notice, and is not intended as investment, legal, accounting, or tax advice or opinion. Stash assumes no obligation to provide notifications of changes in any factors that could affect the information provided. This information should not be relied upon by the reader as research or investment advice regarding any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

Furthermore, the information presented does not take into consideration commissions, tax implications, or other transactional costs, which may significantly affect the economic consequences of a given strategy or investment decision. This information is not intended as a recommendation to invest in any particular asset class or strategy or as a promise of future performance. There is no guarantee that any investment strategy will work under all market conditions or is suitable for all investors. Each investor should evaluate their ability to invest long term, especially during periods of downturn in the market. Investors should not substitute these materials for professional services, and should seek advice from an independent advisor before acting on any information presented. Before investing, please carefully consider your willingness to take on risk and your financial ability to afford investment losses when deciding how much individual security exposure to have in your investment portfolio.

Past performance does not guarantee future results. There is a potential for loss as well as gain in investing. Stash does not represent in any manner that the circumstances described herein will result in any particular outcome. While the data and analysis Stash uses from third party sources is believed to be reliable, Stash does not guarantee the accuracy of such information. Nothing in this article should be considered as a solicitation or offer, or recommendation, to buy or sell any particular security or investment product or to engage in any investment strategy. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. Stash does not provide personalized financial planning to investors, such as estate, tax, or retirement planning. Investment advisory services are only provided to investors who become Stash Clients pursuant to a written Advisory Agreement. For more information please visit www.stashinvest.com/disclosures.