What Is the Purpose of a Direct Deposit Form?


Quick Answer

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.

Continue Reading
Related Videos

Full Answer

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.

Learn more about Personal Banking

Related Questions