What is direct deposit?

You work hard for your money, and getting paid should be the easy part. That's why 92% of U.S. workers rely on direct deposit. Direct deposit is a way of transferring money electronically into your bank account. Depending on your bank, you may also be able to access your funds up to two days earlier than your scheduled payday. Let's review the basics so you can be prepared to receive your funds.

How does direct deposit work?

Direct deposit is a way of transferring money electronically into a payee's bank account through the Automated Clearing House (ACH), the network financial institutions use to transfer payments nationwide. To set up direct deposit, the organization paying you enters your bank account information in its payments system. The organization then confirms your banking details through the ACH to ensure it's correct.

To make a payment to you, the organization tells its bank or financial institution to send you a payment. Its bank then submits the information to the ACH, which processes the transaction. The money is taken out of the sender's bank account and transfers the funds to your bank. Your bank credits your account, and after a short time, the money is ready for you.

What can you use direct deposit for?

Direct deposit payments are a convenient option for the following:

• Paychecks
• Tax refunds
• Stock dividends
• Child support
• Social Security benefits

How do you set up direct deposit?

You have several options for setting up direct deposit, depending on who's sending you money. In most cases, you'll need to complete a direct deposit form and provide your bank account details. This is how it typically works through various entities:

Employer

Most employers offer a direct deposit form during onboarding or through your company's HR or payroll portal. Some companies may allow you to split your paycheck between multiple accounts, like checking and savings. To set up direct deposit, you'll usually need to provide:

• Your bank's routing number
• Your account number
• A voided check

Federal agency or other organization

Government agencies (like the IRS or Social Security Administration), insurance companies or other institutions often let you set up direct deposit online or through a mailed form. You'll need the same banking information, and in some cases, you may have to verify your identity.

Bank or credit union

Some banks and credit unions offer tools in their mobile app or online banking dashboard to help you set up direct deposit. These features can generate a pre-filled direct deposit form or provide all the account information you need to share with your employer or payer. Some financial institutions even contact your employer directly to simplify the setup process.

What do you need to set up direct deposit?

Setting up direct deposit is fairly straightforward. You'll provide a few key pieces of information to ensure your money safely arrives in your account.

1. Your bank's routing number. This is a sequence of nine digits that identify your financial institution. The nine-digit routing number is visible at the bottom left of a check.
2. Your bank account number. You can find this in your online account, in your bank's mobile app or on a check.
3. Your Social Security number
4. A voided check. This isn't always required, but some employers ask for one. To void a check, write the word "VOID" in large letters using ink across its front.

How long does it take for direct deposit to reach my account?

A direct deposit usually takes one to three days to process. If your deposit arrives on a day when your bank or credit union is open, the money has to be available to you the following business day. You might wait an extra day or two if the deposit comes in right before a federal holiday or over the weekend.

Direct deposits are typically scheduled by the sender a few days in advance to help ensure your money arrives on time. In some cases, weekends or federal holidays may shift timing slightly by a day or two. Some financial institutions, including Citizens, even offer early access to direct deposits up to two days earlier than your scheduled payday.

What are the benefits of direct deposit?

Direct deposit is a safe and reliable way to receive payments, offering convenience and peace of mind. Once it's set up, it can save time, reduce hassle and give you more control over where your money goes.

• Convenience: Once setup is complete, payments are automatically deposited into your account — no need to visit the mobile app to deposit checks or to visit your bank or credit union in person.
• Security: Direct deposits reduce the risk of lost or stolen paper checks, and transfers are encrypted and handled through secure banking systems.
• Speed: In many cases, you can receive your money faster — some financial institutions even offer access to your paycheck up to two days early.
• Accessibility: Funds are deposited directly into your account, so you can access them from anywhere using online or mobile banking.
• Flexibility: You can choose which bank account receives the deposit, and in many cases, split payments between multiple accounts — like having part of your paycheck automatically transferred to savings.

Tap into direct deposit at Citizens

Direct deposit can be a great way to accept payments directly into your bank account — quick, secure and worry-free. Need a trusted bank account for direct deposit? Open a Citizens checking account today.