How to set up direct deposit: A step-by-step guide

After working hard, you likely want to have access to your paycheck funds as soon as you're paid. With direct deposit, your employer electronically transfers the money right into your bank account. You can save yourself some time and get to your money earlier.

The process for how to set up direct deposit is quick and straightforward. Here's how.

Information needed for direct deposit

What do you need to set up direct deposit? The main piece is a bank account, like a checking or savings account. That's where your employer will send the money. As long as your employer offers direct deposit, you just need to provide them with:

• Your bank's name. Make sure you use the full formal name of your bank or credit union.
• The type of bank account. You'll need to list whether it's a checking or savings account.
• Bank account number. This sequence of numbers identifies your specific bank account. It's unique and only used by your account.
• Bank routing number. A routing number is a nine-digit number that identifies your bank.
• Your Social Security number. Employers typically ask for a Social Security number to verify your identity.

Each bank and credit union has its own routing number. It's how payors make sure they're sending money to the right place. You can find your bank account routing number and account number on a check, through online banking or through your bank's mobile app.

How to set up direct deposit

Follow these steps to set up direct deposit from your employer:

1. Fill out your employer's direct deposit form to enroll

Tell your human resources or payroll department that you want to set up direct deposit. They should provide a form asking for the information listed in the previous section. You can usually fill out this form in person or online.

2. Use your bank's direct deposit form

Many banks and other financial institutions offer a pre-filled direct deposit form through online banking. You could give this to your employer if they don't have their own form.

3. Provide a voided check

Your employer may request a voided check to confirm your bank details. A voided check can't be used to take money out of your account but has all the information needed to set up direct deposit.

4. Check the direct deposit schedule

After submitting your information, you should be in the system for direct deposit. Ask your employer when you'll receive the first electronic payment.

Here is an example visual of your check, so you can see how easy it is to find the bank routing number and checking account numbers.

Pro tip: If you’re setting up direct deposit with Citizens, you can now use Pinwheel, a seamless and secure way to digitally switch your existing direct deposit online within minutes in 3 easy steps.

Social Security direct deposit

You can also set up direct deposit payment for your Social Security benefit check. You need to provide the same bank information as with other types of direct deposit. You can set up Social Security direct deposit in a few different ways:

• Online: Visit https://www.ssa.gov/manage-benefits/update-direct-deposit
• Phone: Call 800-772-1213.
• Mail: Download the form from GoDirect.gov and send it by mail.
• In-person: If you go to your bank, they can help you register using your Social Security check.

Benefits of direct deposit

Although you may now know how to set up direct deposit, you may wonder if it's worth making the switch. Here are some of the benefits direct deposit offers over paper checks:

• Fast access to funds. Direct deposit puts the money in your account right on payday. You don't have to wait for a check to clear. Some banks even give you early access to your money for a scheduled direct deposit. You could get paid up to two days early.
• Ensures timely payments. You know your money will arrive on time with direct deposit. You don't have to worry about your paycheck getting lost in the mail or the bank taking a long time to clear your check.
• Security for both parties. Paper checks can get lost or stolen, creating problems for you and your employer. A thief could also possibly cash a check in your name, stealing the money. Direct deposit is more secure.
• Easier budgeting. Budgeting and paying bills are tricky when you don't know when money will hit your bank account. Direct deposit makes budgeting more predictable.
• Can save you money. Direct deposit is free. You get your money instantly without paying a fee.
• Helps the environment. Direct deposit means you skip using paper checks, envelopes, and gas to drive to the bank.

Can I split direct deposit between two accounts?

It depends on your employer, but many allow you to split direct deposit into two or more bank accounts. You could set things up where only what you need for daily expenses goes into your checking account while the rest is sent to savings.

If your employer allows this, their payroll deposit form should ask where you want the money deposited. You could choose the amounts that go into each account. For example, you could put 90% of your paycheck into checking, with the rest going into savings.

If your employer can't set up a split direct deposit for you, your bank will likely offer automatic transfers. You can use this process to move money from each paycheck as soon as it's deposited into your checking account. Using the example from before, you could automatically transfer 10% of your pay into savings on payday while keeping the rest in checking for your day-to-day spending.

Social Security does not allow you to direct deposit to two accounts. You'll need to deposit everything into one account before transferring to your second account.

Setting up direct deposit FAQs

What time does my direct deposit hit?

Direct deposits usually hit your bank account the morning of your payday. Some financial institutions process direct deposits very early in the day.

How do I void a check for direct deposit?

Write "VOID" in ink with large letters across the check, covering most lines so that nothing else can be written on the check. That way, no one can use the check to take money out of your account.

Can an independent contractor have direct deposit?

Yes, independent contractors can use direct deposit to be paid. They fill out a form with their clients, listing their bank account and other information as noted at the beginning of the article.

How long does it take to set up direct deposit?

It can take a few weeks or one to two pay periods before your employer sets you up in the direct deposit system. Some process faster than others. Until then, you'd continue receiving your pay by paper check or whatever other method you already use.

How do I update my direct deposit information?

Contact your HR or payroll department and let them know you want to change your direct deposit information. They'll ask for the new bank information to change your direct deposit.

Direct deposit: A better way to get paid

Direct deposit can save you a lot of time and hassle versus constantly cashing paper checks. Chances are that your employer prefers it too and will help you get set up. Once you take advantage of direct deposit, you may find it easier to set up other automatic debits and transfers that help you meet budgeting and financial planning goals.

Need to open a checking account? Citizens has options for all your banking needs.