What is a direct deposit?

A direct deposit is an electronic payment made into a savings or spending account. This transfer of money is sent from one bank account to another via the Automated Clearing House (ACH) network.

Payroll payments are types of direct deposits. Employers send funds to their employees' bank accounts each payday. Once a direct deposit is set up, all paychecks earned by an employee are automatically added to their account balance with no additional actions required.

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