Direct Deposit FAQs For Individuals

Frequently Asked Questions about Direct Deposit via ACH

Here are some of the most common questions people ask about Direct Deposit via ACH. Click on a question below to view the answers.

General Questions About Direct Deposit

What if my pay date falls on a weekend or holiday?

How soon can I withdraw money after I receive a Direct Deposit via ACH payment?

Do I need a checking account to use Direct Deposit via ACH?

Do I have to use a certain financial institution to participate in Direct Deposit via ACH?

What is Direct Deposit via ACH?

How many people use Direct Deposit via ACH?

What if I want to cancel my Direct Deposit via ACH?

What should I do if I change financial institutions?

How can I keep the joint owner of my account from seeing how much money I make?

Are taxes and deductions withheld from my pay with Direct Deposit?

Can I divide my pay among different accounts?

How will I know when my deposit goes into my account?

What if my pay date falls on a weekend or holiday?

How soon can I withdraw money after I receive a Direct Deposit via ACH payment?

Do I need a checking account to use Direct Deposit via ACH?

Do I have to use a certain financial institution to participate in Direct Deposit via ACH?

How many people use Direct Deposit via ACH?

What is Direct Deposit via ACH?

Do I have to use a certain financial institution to participate in Direct Deposit?

How many people use Direct Deposit?

Getting Started with Direct Deposit

Does Direct Deposit via ACH cost me any money?

Why did my employer ask for a voided check when I signed up for Direct Deposit via ACH?

Can my employer require me to use Direct Deposit via ACH for payroll?

What if my company does not offer Direct Deposit via ACH?

How do I sign up for Direct Deposit via ACH?

Using Direct Deposit

What if my deposit isn't in my account on the pay date?

Can I be sure my privacy is protected?

How will I be able to keep track of the balance in my account?

What should I do if I have a problem with Direct Deposit via ACH?

What happens if my payment goes into someone else's account?

Will my employer be able to take money out of my account?

Is my personal account information safe?

General Questions About Direct Deposit

What if my pay date falls on a weekend or holiday?

Employers typically adjust their payroll processing so that funds are available on the first business day before the scheduled pay date. Ask your employer if it does the same.

How soon can I withdraw money after I receive a Direct Deposit via ACH payment?

Your money is generally available to you at the start of business on the day of the deposit.

Do I need a checking account to use Direct Deposit via ACH?

No. Your money can be deposited into any checking or savings account or distributed among different accounts. If you do not have a checking or savings account, your employer or the federal government might direct you to obtain a payroll card.

Do I have to use a certain financial institution to participate in Direct Deposit via ACH?

No. You may use any bank or credit union in the United States that participates in the ACH Network. Most do. Ask your financial institution if they can accept Direct Deposit via ACH.

What is Direct Deposit via ACH?

Direct Deposit via ACH is an electronic payment deposited directly to your checking or savings account. Types of payments deposited can include payroll, employee expense reimbursement, government benefits, tax and other refunds, and annuities and interest payments. It includes any ACH credit payment from a business or government to an individual.

How many people use Direct Deposit via ACH?

Direct Deposit via ACH is widely used. Three out of four working Americans who have access to Direct Deposit via ACH use it. 97% of people who use Direct Deposit via ACH are very satisfied with it.

What if I want to cancel my Direct Deposit via ACH?

The authorization form you completed to enroll in Direct Deposit via ACH should have information as to how to revoke authorization and discontinue participation. You may also want to contact your employer or the company issuing your Direct Deposit.

What should I do if I change financial institutions?

Simply give your new account and financial institution information to your employer or the company issuing your payment. You may also need to complete a new authorization form. Be sure to leave the old account open until the first Direct Deposit via ACH transaction appears in your new account.

How can I keep the joint owner of my account from seeing how much money I make?

The best way to keep transactions confidential from a joint account holder is to open another single account and split your deposits. Read more about Split Deposits.

Are taxes and deductions withheld from my pay with Direct Deposit?

Yes. The payment stub or secure, online service provided by your employer should show the details of your taxes, insurance, or any other deductions.

Can I divide my pay among different accounts?

You may have the option of splitting the deposit between one or more checking or savings accounts. Read more about Split Deposits.

How will I know when my deposit goes into my account?

For payroll, companies typically issue a dated payment stub that is identical to a paper check stub, or provide employees access to a secure, online service that shows the amount and the date of the deposit, as well as tax and other withholding information.

What if my pay date falls on a weekend or holiday?

Employers typically adjust their payroll processing so that funds are available on the first business day before the scheduled pay date. Ask your employer if it does the same.

How soon can I withdraw money after I receive a Direct Deposit via ACH payment?

Your money is generally available to you at the start of business on the day of the deposit.

Do I need a checking account to use Direct Deposit via ACH?

No. Your money can be deposited into any checking or savings account or distributed among different accounts. If you do not have a checking or savings account, your employer or the federal government might direct you to obtain a payroll card.

Do I have to use a certain financial institution to participate in Direct Deposit via ACH?

No. You may use any bank or credit union in the United States that participates in the ACH Network. Most do. Ask your financial institution if they can accept Direct Deposit via ACH.

How many people use Direct Deposit via ACH?

Direct Deposit via ACH is widely used. Three out of four working Americans who have access to Direct Deposit via ACH use it. 97% of people who use Direct Deposit via ACH are very satisfied with it.

What is Direct Deposit via ACH?

Direct Deposit via ACH is an electronic payment deposited directly to your checking or savings account. Types of payments deposited can include payroll, employee expense reimbursement, government benefits, tax and other refunds, and annuities and interest payments. It includes any ACH credit payment from a business or government to an individual.

Do I have to use a certain financial institution to participate in Direct Deposit?

No. You may use any financial institution in the United States that is a member of the ACH Network. A very small number of financial institutions are not ACH Network members, so be sure to check with the financial institution of your choice to make sure it can accept your Direct Deposit.

How many people use Direct Deposit?

Three out of four working Americans who have Direct Deposit available for their pay use it. Ninety-seven percent (97%) of Direct Deposit users are very satisfied with it.

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Getting Started with Direct Deposit

Does Direct Deposit via ACH cost me any money?

No. In fact, many financial institutions waive other fees if you use Direct Deposit via ACH. Also, Direct Deposit enables you to avoid the high fees charged by check-cashing services.

Why did my employer ask for a voided check when I signed up for Direct Deposit via ACH?

The company uses your voided check, or a copy of a document from your bank or credit union, to verify your account number and the institution’s routing transit number to ensure that your Direct Deposit via ACH is set up accurately.

Can my employer require me to use Direct Deposit via ACH for payroll?

Some states allow companies to mandate Direct Deposit for payroll. Contact your state for more information.

What if my company does not offer Direct Deposit via ACH?

Tell your employer that you're interested in Direct Deposit via ACH. A one-page fact sheet is available to show your employer the benefits of Direct Deposit via ACH.

How do I sign up for Direct Deposit via ACH?

Your company will provide you with an authorization form that must be completed to sign up. Get Started.

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Using Direct Deposit

What if my deposit isn't in my account on the pay date?

Contact your employer or the company that issued the payment.

Can I be sure my privacy is protected?

Yes. Your transactions are safe and confidential since money transferred electronically passes through fewer hands than a paper check. Also, federal regulations and banking rules provide consumers with protection regarding electronic payments.

How will I be able to keep track of the balance in my account?

Manage your account balances with your statements, mobile banking apps, or online banking service.

What should I do if I have a problem with Direct Deposit via ACH?

Problems with electronic payments are rare and can usually be corrected quickly. If you have a problem, simply contact your employer or the company that issued the payment.

What happens if my payment goes into someone else's account?

That's very unlikely. Should an error occur, simply notify your employer or the company that sent the payment.

Will my employer be able to take money out of my account?

The form that you complete and sign to enroll in Direct Deposit via ACH should only authorize your employer to withdraw money from your account in order to correct an erroneous deposit. There are rules in place to protect you.

Is my personal account information safe?

Yes. Once you sign up, your information becomes part of an electronic transaction that is sent through the safe and secure ACH Network. In fact, fewer people see your information with Direct Deposit via ACH compared with paper check processing.

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