To set up direct deposit, get your bank's routing number and your account number, fill out your employer's or payer's direct deposit authorization form with those numbers, select the account type (checking or savings), and submit. Most payroll systems activate within one to two pay cycles.
Direct deposit is an electronic ACH credit that delivers your paycheck, government benefit, or other recurring payment directly into your bank account â no paper check, no trip to the bank. The CFPB's direct deposit guidance notes that you need two numbers to set it up: your bank's routing number and your specific account number.
Your routing number is a 9-digit code that identifies your bank. Your account number identifies your specific checking or savings account at that bank. Both appear at the bottom of a paper check â the routing number is the first 9 digits, and your account number follows. You can also find them in your bank's mobile app under account details. Large banks sometimes use different routing numbers for ACH vs. wire transactions â confirm you're using the ACH routing number for direct deposit. The Federal Reserve's E-Payments Routing Directory lets you verify routing numbers for free.
Most payroll systems require one to two full pay cycles before direct deposit activates, and your employer may issue a paper check for the interim period. Once the first direct deposit posts, verify the amount matches your expected net pay. The FDIC's consumer resources recommend keeping a record of your direct deposit setup confirmation in case a deposit is misdirected or delayed.
Many payroll systems let you split your direct deposit â for example, routing a fixed dollar amount to savings and the remainder to checking. This is one of the most reliable ways to automate saving, since the money moves before you have a chance to spend it. Check whether your employer's system supports multiple account splits; most large payroll platforms do.