How to Setup Direct Deposit for Your Paycheck
Many people prefer the convenience of having their paycheck deposited automatically into their checking or savings account. An ATM or a smartphone app are all you will need to deposit your pay. This service eliminates the need to go to the bank. Direct deposit is often more secure than depositing a paper check. And it eliminates the risk of a check being lost or stolen.
Obtain a Direct Deposit Form
If you work for a larger company, or one that outsources its payroll management to a third-party, they will probably provide you with a link to an online version of a direct deposit form. But if your employer doesn’t have a form for you to use, you can often download one from your bank’s website.
One thing to ask about is whether your employer is willing to divide your paycheck and submit portions of it to multiple accounts. Not everybody needs this service. But some people find budgeting easier if they can direct part of their pay to a checking account and the rest to savings.
Complete the Form as Directed
Before you begin filling out the form, read it carefully. You will be required to supply some sensitive information. So make sure that you’ve completed the form both accurately and completely. In addition to your name and the name of your financial institution, you will be asked to provide your checking account and your bank’s “routing number.” Each bank has its own routing number to make verifying and transferring funds easier.
Some forms may request that you attach a paper check or deposit slip so that the person processing your request can double-check your account and routing number. Be sure to write “void” in large letters on both the back and the front of the check or slip.
Submit the Direct Deposit Form
Submit the form and any supporting documents to the payroll department. This is especially essential if you are working remotely. After double checking to make sure that that your banking details are accurate, you may be asked to scan your documents and either upload them to a secure server, or send via email.
The information in your form is sensitive, and could even be used to drain your checking account. Whenever possible, hand-deliver these materials directly to someone who works in the payroll department. Don’t leave it unattended on a counter or someone’s desk.
If you’ve been asked to submit your form electronically, use a secure server or email system to do so. Follow up to make sure that the form has been received by your employer. Then shred both the deposit form and the voided check as doing this can help prevent identity and financial theft.
Check Your Account
Ask your employer when you can expect to see deposited into your account. In some cases, you may have to wait for one or two pay cycles before the system begins automatic deposits. Monitor your account. And if the funds do not appear when they are supposed to, contact both your bank and your employer for verification and assistance.