How Long Does Direct Deposit Take?

When sending or receiving payments, you have several options. Among those options, you can use cash, checks, or electronic payments.

Most organizations prefer that last choice—otherwise known as a direct deposit. In fact, you’re sometimes required to use direct deposit

Using direct deposit is a safer and more efficient way to send and receive money electronically since the money goes straight from the issuer into your bank account, reducing the amount of time and people needed to process the transaction.

In this guide we will breakdown everything you need to know about direct deposit and how long it takes to reach your bank account.

What Is Direct Deposit?

You can elect to receive direct deposit payments as long as your employer uses direct deposit — most of them do — and as long as you have a bank account where your employer can send the money.

Direct deposit is an option whether you get paid hourly or through an annual salary. Full-time workers, part-time workers, and independent contractors can all use direct deposit.

How to Sign Up for Direct Deposit

Signing up for direct deposit is simple. All you have to do is fill out a direct deposit authorization form.

This usually happens on your first day of work, but you can also choose direct deposit or change your information later on.

Some companies handle this process entirely online and some use a third-party to sign you up.

The direct deposit form will ask for

• Your bank account number
• The bank’s routing number
• Whether your putting money in a checking or savings account
• How much of your paycheck you want to deposit in the account

Forms vary slightly by institution and some ask for other information, like the name and address of your financial institution or other personal information.

How Long Does Direct Deposit Take?

If you’re wondering how long direct deposit takes, the time frame depends on the entity issuing the funds.

For example, if your employer uses payroll software to process your paycheck and send the transfer, they’ll set a pay date.

That’s the date you can expect to see the funds in your bank account.

The payroll software will remind your employer to process and submit the direct deposit somewhere between one and four days before your pay date.

Once they submit the payment, the funds are transferred to your account on the pay date.

Although the process is fast, you might not be able to access your funds instantly.

In many cases, you can withdraw the funds the same day they were received, but in other cases, you might not be able to access it until the next business day.

What Are Alternatives to Direct Deposit?

If you don’t have a bank account but still want the convenience of a service similar to direct deposit, here are some alternatives:

• Paypal, Venmo, Cashapp : These payment systems let others send money directly to your account, which you can then withdraw at an ATM using your PayPal, Cashapp, or Venmo card.
• Prepaid Debit Card: Your funds can also be loaded onto a prepaid debit card, which you can use to pay for items or make withdrawals at an ATM.

Conclusion

Even with all of the financial tech available at your fingertips, like online banking and mobile apps, it can still be a drag to figure out how to deposit a check these days.

Whether it’s trying to take a not-so-blurry photo to submit to the bank pending review, or attempting to get to an actual branch before closing, these hassles are easily avoided by signing up for direct deposit.

I definitely recommend you checking with your bank on if they accept direct deposit

Let us know in the comment section below if it did! If you don’t have a savings account, see our best savings account section. Looking to add a little extra income each year? If so, see our list of the best bank deals!