1. Banking 101

Receiving Direct Deposits

You can also add money to your account via direct deposit of your paycheck if your employer offers this payment method. This arrangement can make life easier for both you and your employer. 

If you are paid by direct deposit, the funds should be available to you on payday. You won’t experience the lag time that you would if you had to deposit a paper check. Some banks will waive monthly fees or offer other incentives if you have your paycheck deposited directly. Other types of payments that you can receive by direct deposit include annuity payments, dividend and interest payments, pensions, bonuses and commissions, Social Security benefits, child support payments, and Veterans Administration benefits.

Direct deposits are conducted via automated clearing house transfer, more commonly known as an ACH transfer. This type of transaction is a way of sending money electronically. It often takes several days for the transaction to complete, but there are generally no fees involved. The sender can decide the date on which the payment will be available to the recipient—this is how you can get your money on payday without delay via direct deposit. To conduct an ACH transfer, you’ll need to give your name, bank account routing number, and account number to the company or institution you want to receive money from.

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