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What Is a Direct Deposit?

By Frank BassUpdated May 16, 2025 at 12:07 PM | Fact-checked by Robin Hartill, CFP

Key Points

  • Direct deposit is an electronic payment method banks use to transfer money directly into your account.
  • Most employers use direct deposit for payroll, which helps ensure timely and secure payments.
  • It's easy to set up direct deposit by providing your bank account details to the depositor.

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