How to Direct Deposit for Free? 

You have heard of the brilliant advantages and want to set up Direct Deposit. I am here to tell you exactly how you can do so. 

Here are a few ways to get your Direct Deposit for Free. 

  1. Ask your employer
  2. Use your bank’s online banking or mobile app
  3. Use a payment service
  4. Contact the paying organization

In the rest of the article, I will elaborate more on the steps. I will also discuss a few Frequently asked questions you may have to clear any of your doubts.

What You’re Going to Need

Before I tell you how you can direct deposit for free, let’s quickly go over some information that you will need to keep handy! 

  • Bank name
  • Account type
  • Account number 
  • Routing number

Way 1: Ask Your Employer

Sometimes, everything will be given to you; all you have to do is ask. Most employers offer direct deposit as a payment option for their employees. Ask your employer’s HR department for a direct deposit enrollment form.

Then you have to simply fill out the form and provide your bank account and routing numbers. Your employer will also require a voided check or bank document with your account information for verification. A very easy and simple process that shouldn’t cause an inconvenience to your employer at all. 

A simple favor is all you have to ask for. 

Way 2: Use Your Bank’s Online Banking or the Mobile App

Another way you can get Direct Deposit for free is through your bank’s online options. Most banks offer the ability to set up Direct Deposit through their online banking or mobile app. You will have to log into your bank account and look for the option to set up direct deposit. 

Next, follow the prompts to enter your employer’s information and your bank account and routing numbers. There you have it, another process that won’t take you more than 15-20 minutes. 

Let your paycheck take the direct route to your bank account with direct deposit.

Way 3: Use a Payment Service

For your benefit, there are also some payment services, such as PayPal or Cash App, that offer direct deposit services. Check with the payment service to see if they offer direct deposit, and you can follow the instructions for setting it up. 

This is an independent method that you can use without having to rely on anyone. Be smart and then get paid ‘the smart way’.

Way 4: Contact the Paying Organization

For those of you who are receiving government benefits or other payments, you can contact the paying organization to see if they offer direct deposit. If they do, they will likely require your bank account and routing numbers to set up the deposit.

In most cases, setting up direct deposit is free. However, some banks may charge a fee for this service. Check with your bank to see if they charge a fee for direct deposit. You can avoid paying for it by going through the above-mentioned methods. To me, this method is the best,  because who has time to go to the bank anymore?

How Does Direct Deposit Work? 

Now that you know how to get direct deposit for free, I am here to tell you exactly how it works. 
Your employer will start by gathering the banking details, such as bank account and routing numbers, from you and all its suppliers and staff. 

This is a portion of the data that was probably obtained about you by your employer throughout the onboarding procedure after you were employed. 

Let’s assume that this firm pays its employees on the 15th and the final day of each month. 

The company typically will send its bank the payroll instructions one or more business days before payday, and the bank subsequently sends that information to the Automated Clearing House (ACH). 

For each employee’s paycheck, the ACH operator organizes the ACH entries and makes sure that each instruction is sent to the appropriate banking institution. The whole process is like magic, but with money!

The employees’ banks then proceed according to the ACH instructions. ACH is what is commonly known as Direct Deposit. The payment will be processed accordingly, and money shall be credited to the employees’ accounts. 

How To Set Up a Direct Deposit Account?

After I have told you all the ins and outs of Direct Deposit, you must be eager to create an account. Here is how you can set it up.

Regardless of the payer, the procedure for setting up direct deposit is essentially the same. 

1.  Fill Out the Direct Deposit Form 

A direct deposit form will request you to fill out basic information like name, address, Social Security number, and signature to authorize the direct deposit. All of which will have to be provided to you by your employer.

2. Include Your Account Information

Your bank or credit union account information, in addition to the data mentioned above, is the most crucial piece of information on the direct deposit form. You must specifically supply your bank or credit union routing number and account number in order for your company to start the direct deposit.

3. Deposit Amount

Typically, the deposit amount is the same as the value of your cheque. The choice to deposit a portion into your checking account or a portion into your savings account can be available. You can choose one account or multiple accounts. 

4. Attach a Voided Check or Deposit Slip

Despite the fact that you often list your account details on the direct deposit form, you may frequently need to affix a voided check or deposit slip to confirm that the payer is connecting to the right bank account.

5. Submit the Form

It’s crucial that you are very cautious while completing a direct deposit form because it contains a lot of sensitive information. Give this form straight to your payroll department if you work in a traditional office setting. If you are transferring, make sure your payment gateway is secure. This is to avoid a third party hacking into your safe transfer. 

With direct deposit, your money is always where it needs to be – in your account!

Final Thoughts

Direct deposit is a convenient way to receive your paychecks, government benefits, and other payments directly into your bank account. 

You can direct deposit for free by asking your employer, using your bank’s online services or app, a payment service platform or by getting in touch with the paying organization.

According to the American Payroll Association’s 2020 Getting Paid in America Survey, Direct Deposit has grown to be a very popular payment option in recent years, with over 94% of U.S. employees receiving their paychecks in this manner. 

Deposit the way of the future: Directly to your account!

It is fast, secure and, more importantly, completely free. Make the most use of this service and create a Direct Deposit account today. So say goodbye to paper checks and hello to direct deposit. 

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