Direct deposit: how to get paid straight into your bank account

If an employer pays by direct deposit, or a transfer is expected to land directly in an account, here’s exactly how it works and what’s needed to set it up.

What is direct deposit?

Direct deposit is a method of electronically transferring money, most commonly a paycheck, directly into a bank account, without the need for a paper check. It relies on the Automated Clearing House (ACH) network⁠(opens in new window) to move the funds and typically requires the payer, such as an employer, to have the account and routing numbers on file.

How direct deposit works step by step

1. Get a direct deposit form from an employer or payer. Many employers provide this as part of onboarding, either on paper or through an online payroll system.

2. Gather the account and routing numbers. Both are typically available in a banking app, on a bank statement, or on a paper check⁠(opens in new window).

3. Fill in the account details on the form. Double-checking every digit matters, since a single error can delay or misdirect a payment.

4. Submit the form to the employer or payer. Some employers require a voided check attached to the form as additional confirmation.

5. Wait for the first payment to process. It can take one or two pay cycles for direct deposit to fully activate, so the first payment may still arrive as a paper check.

6. Confirm the deposit landed correctly. Checking the account on payday helps confirm the amount and timing match what was expected.

Common mistakes with direct deposit

• Submitting the form with a typo in the account or routing number. This is a common reason a first direct deposit is delayed or rejected, though outcomes may vary by employer and bank.

• Assuming direct deposit starts immediately. It often takes a pay cycle or two to fully activate, so it’s worth confirming with an employer when to expect the switch.

• Not updating direct deposit details after switching banks. Forgetting this step can send a payment to a closed account.

Direct deposit and international money transfers

Direct deposit isn’t only for paychecks. When an international transfer is sent and bank deposit is chosen as the delivery method, the money typically arrives in a recipient’s account the same way a direct deposit would, landing electronically without any physical cash or paper check involved.

For this to work smoothly, a recipient needs to provide accurate account details, which vary by country. In the United States, that means an account and routing number. In many other countries, it might mean an International Bank Account Number (IBAN)⁠(opens in new window) or a local equivalent, such as a CLABE in Mexico. Getting these details exactly right matters even more for an international transfer than a domestic one, since a misdirected international deposit can be harder, or in some cases not possible, to correct after the fact.

For anyone new to receiving money this way, confirming account details directly from a banking app rather than from memory, and sharing them with a sender through a secure method rather than reading them aloud over an unfamiliar phone call, is worth doing.

Setting up direct deposit for the first time

Setting up direct deposit typically requires providing an employer with a bank’s routing number and an account number, usually through a form or an employer’s payroll portal. Double-checking these numbers before submitting avoids a delayed or misdirected paycheck, which can be a frustrating and sometimes slow issue to resolve once payment has already been sent to the wrong account.

Federal rules require banks to make direct-deposited funds available⁠(opens in new window) no later than one business day after the bank receives them, though many banks make the funds available sooner, sometimes immediately.

Direct deposit and early access to your paycheck

Some banks now offer early access to a portion of a paycheck once an employer has submitted it for direct deposit, sometimes a day or two before the official pay date. This feature, when available, can provide helpful flexibility for anyone managing a tight budget around a regular remittance schedule.

Splitting direct deposit across multiple accounts

Many employers allow splitting a direct deposit across more than one account, for example sending a fixed amount to savings and the remainder to checking, automating a savings habit without requiring a separate manual transfer each pay period.

In Summary

Direct deposit is one of the more common and dependable ways money moves into a bank account, whether it’s a regular paycheck or an international transfer from a family member abroad. Setting it up⁠(opens in new window) correctly the first time, with accurate account and routing details, helps avoid delays down the line.

This publication is provided for general information purposes only and is not intended to cover all aspects of the topics discussed herein. This publication is not a substitute for seeking advice from an applicable specialist or professional. The content in this publication does not constitute legal, tax, or other professional advice from Remitly or any of its affiliates and should not be relied upon as such. While we strive to keep our posts up to date and accurate, we cannot represent, warrant, or otherwise guarantee that the content is accurate, complete, or up to date.