What Is the Purpose of a Direct Deposit Form?

What Is the Purpose of a Direct Deposit Form?

A direct deposit form authorizes the electronic transfer of money into a checking or savings account. Direct deposit is used by many businesses and organizations to directly transfer payments to employees' bank accounts.

At companies that participate in direct deposit, a newly hired employee will be given the option to enroll in the program by completing a direct deposit form. A bank account or electronic transfer account is necessary to participate. A direct deposit form asks for bank account information, such as routing numbers, and a signature to authorize the transaction. The employee may specify part or all of a payment to be directly transferred into a specified bank account on a regular basis.