Instead of getting paid with a paper check, direct deposit is a type of payment where your money gets electronically transferred to your bank account by your employer, the government, a pension fund, or even the IRS.
Since it’s an electronic payment, you can get your money faster with direct deposit than by depositing a paper check at the bank and waiting for your money to clear.
Direct deposit is commonly used for payroll checks from your employer or from the Social Security Administration. With IRS direct deposit, you can get your tax refund and stimulus checks automatically deposited to your bank account.
When you get paid with direct deposit, your money gets automatically deposited to your bank account, so you don’t need to take any action. No time to get to the bank? No worries — your money will already be in your account with direct deposit.
Direct deposit is one of the most secure ways to get paid. Paper checks can get lost or stolen, but when your money is directly deposited into your account, you don’t have to keep track of a check.
Direct deposit lets you access your money faster than by depositing a paper check. Even better, with a Varo Bank Account, you can access your direct deposit up to two days early.* That means you can pay bills early and avoid late fees.
Whether you’re using direct deposit for recurring payments, like paychecks or government benefits, or for one-time payments, like stimulus checks or tax refunds, direct deposit makes it easier to access your money.
The setup process is typically the same no matter the payer. You’ll need to provide some info to your employer or payer, most of which you can find on a personal check or on your bank’s app or website.
Here’s what you’ll need to get started.
Your bank’s routing number directs your money to the right bank. Your account number directs your money to the right account.
Once you’ve collected this info, get a direct deposit form from your employer or payer to fill out and return.
With a Varo Bank Account, you can easily get a prefilled form in the app or on our site. Go to Move Money > Direct Deposit and follow the prompts to create a form. Once your form is created, give it to your employer or payer. Then your work for direct deposit is done!
Direct deposit can take up to two pay cycles to get set up, so you may still have to deposit a physical check for a couple weeks.
With direct deposit, your money is directly deposited to your bank account through an electronic network called the Automated Clearing House (ACH). Your money clears automatically through the ACH and is available immediately. Some banks hold on to the funds for a few days, but we post your money as soon as we get it.
Both direct deposit and wire transfer are ways to transfer money electronically, but direct deposit is typically free and takes a day or two, while wire transfers come with a fee but happen in a few hours. Direct deposit is usually used for recurring payments, like a paycheck, and wire transfers are usually used for one-time or occasional payments, like buying a home.
Absolutely. With a Varo Bank Account, you can easily check the status of your direct deposit in the Varo Bank app. Plus, turn on push notifications and you’ll instantly get notified when your direct deposit hits.
Typically, you just need to fill out a direct deposit form and give it to your employer or payer. With Varo, you can easily get a prefilled form right in the Varo Bank app.