What Is Direct Deposit?
Definition
Your paycheck or other regular payment is sent electronically straight to your bank account. No paper check needed.
Example: "With direct deposit, my paycheck hits my account every Friday morning automatically."
Why It Matters
Direct deposit is faster, safer, and more convenient than paper checks. Your money arrives on payday without you needing to visit a bank or wait for a check to clear. Many employers now require or strongly encourage direct deposit. It's also how government payments like tax refunds and Social Security arrive. To set it up, you provide your employer with your bank's routing number and your account number. Some banks waive monthly fees when you have direct deposit set up, making it a smart financial move.
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