Direct Deposit
What Does Direct Deposit Mean?
Electronic funds that are deposited directly into your bank account rather than through a paper check. Common uses of a direct deposit include income tax refunds and pay checks.
Investopedia explains Direct Deposit
As a whole, direct deposit is the most popular form of payment as it eliminates the risk of losing a check and eliminates the need to physically visit a bank to make a deposit.
Direct deposit allows an employee's pay to be immediately available in their accounts at midnight the day before pay day and it is not subject to a check clearing wait period. Salaries paid via check can take a week or more to clear within their account.
Direct deposits are also popular for income tax refunds, as it is the fastest method of payment.
Related Links
- Special Feature: Income Tax Guide - Don’t miss out on tax benefits and significant savings this year! Our Income Tax Guide has everything you ever wanted to know about tax but were afraid to ask.
- Your First Checking Account - This owner's manual will show you what to expect from your bank.
- IRS.gov - The source of all things tax related in the United States