How does Direct Deposit work?

Direct deposit is an automated process commonly used for paychecks, which allows employers to transfer money electronically into your checking or savings account, with no need for a physical or paper check.

Direct Deposit works through an electronic network called the Automated Clearing House (ACH). The ACH network is managed by the National Automated Clearing House Association, a nonprofit association known as NACHA. It administrates the movement of money through the ACH network for all U.S. banks and credit unions.

To learn more about direct deposit, read our Learning Hub article, The Benefits of Direct Deposit.