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.

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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.

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