Stash Learn


Mar 12, 2019

Everything You Ever Wanted to Know About Direct Deposit

By Team Stash

Direct deposit is a common banking service. But how does it work?

Twitter LinkedIn Facebook

The best thing about work? Getting paid. But the process of getting to a bank branch, filling out a deposit slip, and standing in line to deposit your paycheck? It can be a drag.

That’s why the banking gods and goddesses created direct deposit.

What is direct deposit?

Direct deposit is a direct transfer from one bank account to another. Typically, direct deposit involves an employer paying an employee via (you got it) direct deposit, forgoing the need for a physical paper paycheck.

Outside of your paycheck, direct deposit can also be used in other ways. The IRS, for example, can use direct deposit to transfer tax refunds to filers’ bank accounts.

Many organizations use direct deposit as it eliminates the need to print a physical check, and reduces risk in that a physical check can be lost or stolen in the mail. Payments can also be made or received much faster, and an electronic record is created for transactions, allowing all parties involved to track funds.

How do you set up direct deposit?

Employees who wish to set up direct deposit with their employers in order to receive their paychecks generally have to give the employers their banking information. That includes the name of your bank, the bank’s routing number, account numbers, account types (saving or checking), etc.

From there, the process takes anywhere from a few days to a couple of weeks—it largely depends on the institutions involved.

Some banks allow for employees to receive their paychecks up to two days early (such as Early Direct Deposit here at Stash)

Direct deposit with Stash

Stash customers who want to set up direct deposit with their employers in order to receive their paychecks generally have to fill out a form that gives their employers their banking information. That includes some basic data, such as the name of your bank and its routing number, and your account number and type, such as whether it’s a savings or checkings account. (You’ll find your Stash banking account information in your bank account settings.)

Stash can help you set up direct deposit quickly and easily with its technology. Simply answer a few short questions using an electronic form in the app. We’ll send the information directly to your employer, or to your employer’s payroll provider.

What’s more, if you don’t feel like putting your entire paycheck into your Stash banking account, you can choose how much you want to deposit. Simply choose a percentage or a dollar amount, and we’ll take care of the rest.

You should receive your first direct deposit in one to two pay periods, depending on your company’s payroll policies, and the financial institutions involved.  You can always reach to your employer or payroll provider for real-time updates.

Get paid two days early with direct deposit3

Early Direct Deposit from Stash can help you take charge of your financial life by giving you access to your money up to two days earlier than normal.

Smarter banking

Built for you
Sign up now

Written by

Team Stash

3. Early access to direct deposit funds depends on when the payor sends the payment file. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.


Invest in

By using this website you agree to our Terms of Use and Privacy Policy. To begin investing on Stash, you must be approved from an account verification perspective and open a brokerage account.