If direct deposit sounds like something you’d be interested in, here are some key steps you’ll need to follow in order to get everything set up. Remember, most employers and even many government agencies offer direct deposit, so this is a totally secure and convenient way to get paid.
1. Get a Direct Deposit Form From Your Employer
Start by asking your employer for a direct deposit form. This is a crucial step since you can’t continue without this. The direct deposit form is a document that authorizes your employer to send money to your bank account using an American Bankers Association (ABA) routing number and a bank account number.
2. Provide Your Personal Bank Account Information
To complete the form, you will need to add information like:
- Your bank account name and address
- Bank account number
- Routing number
- Type of account (checking or savings)
- Name(s) of the account holder
3. Decide How Much Money You Want to be Deposited Into Your Bank Account
Next, be sure to determine how much money you want to be deposited into your bank account.
While some people opt to have their entire paycheck deposited into their checking account, a cool feature with direct deposit is that you can split up the payment between your checking and savings accounts.
For example, you may want your employer to deposit 10% of your income to your savings account and the remaining 90% into your checking account.
Chime’s automatic savings feature, for example, makes it easy for you to do this so you don’t have to think about saving money. This way you can set aside a portion of your income automatically and budget the rest of your paycheck for other expenses.
Another option you may want to consider is splitting up your direct deposit amount between your checking account and your partner’s checking account. If you combine expenses with your spouse or live on one income, this may be a convenient way to disperse your paycheck.
4. Include a Direct Deposit Check or Deposit Slip With Your Form
A direct deposit check is simply a check that has been voided. This indicates that the check can’t be accepted for payment, but can be used to gather important bank account details and information.
And, even though you’re already providing this information on the direct deposit form, it’s still a great idea to verify everything with a voided check to ensure that your paycheck gets deposited into the correct account.
5. Submit Your Direct Deposit Form to Your Employer & Monitor Your Bank Account
Check to make sure that the information on your direct deposit form is accurate before you turn it in. Your employer or the HR department should let you know how long it will take to process your information and set up your direct deposit.
You may have to wait one or two pay periods, but keep your eye on your bank account around payday so you’ll know when the direct deposit kicks in.