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Direct deposit is a program in which a payment is deposited directly into a savings, checking, or brokerage account. With direct deposit the named recipient of a payment never sees or handles a check; instead, once a direct deposit account has been established, funds are electronically transferred directly into the specified account. A direct deposit account must be specifically set up, with authorizations for both the transferring institution as well as the receiving one. Direct deposit is handy for seniors, especially, who often receive social security or other payments at the same time each month; direct deposit helps prevent theft and insures that funds are available for use as quickly as possible. Direct deposit can be used for virtually any regular or semi-regular payment, such as paychecks, social security checks, and dividend payments as well as other types of payments. |
