Start a direct deposit authorization form to authorize a third (3rd) party, such as your employer, to send money to your bank account.
Last Update April 27th, 2022
- What is a Direct Deposit
- Types of Direct Deposit Forms
- How to Set Up a Direct Deposit
- FAQs About Direct Deposit Authorizations
What is a Direct Deposit
A direct deposit is an electronic transfer of funds into a bank account. The party making the payment is known as the “payer”, and the party receiving the funds is called the “payee”.
This type of transfer does not involve any physical or paper checks and requires the use of a network that allows deposits to be made between banks. These electronic networks are known as automated clearing houses (ACH).
Due to the fact that direct deposits are made electronically, accounts are quickly credited, and it is not usually necessary to wait a long time for the money to clear. However, to enable a third party to make this type of transfer to your bank account, you must authorize them to do so through a Direct Deposit Authorization Form.
This is typically required when receiving payroll earnings, disability benefits, or other types of subsidies and payments. When used by employees to receive their salary, the document is also known as an:
Employee Direct Deposit Form
Employee Direct Deposit Authorization Form
Payroll Direct Deposit Form
Types of Direct Deposit Forms
The type of direct deposit form you use will depend on the bank which manages your account. This document will gather all the required details, including reference information such as identification numbers, to permit a third party to directly send money to your account.
The most common bank direct deposit forms are listed below:
Bank of America
Capital One (360)
Intuit / QuickBooks
Navy Federal Credit Union (NFCU)
Social Security Admin
Standard (Form 1199a)
How to Set Up a Direct Deposit
Setting up a direct deposit is a relatively simple process when using a pre-prepared authorization template. All you need to do is fill in the necessary information and confirm the deposit amounts before submitting it.
It’s also important to note that sometimes the party transferring the funds will also require you to submit a voided check (checking account) or a deposit slip (savings account) to ensure that the account is valid.
If you or your company will be making the deposit, then you will need to confirm all the direct deposit information on the authorization form, as well as the identification of the payee. Then you will be able to make the deposit through your or your company’s bank account.
FAQs About Direct Deposit Authorizations
It’s important to be fully clear on what your direct deposit authorization should include and cover before starting your own document. If you’re still unsure of some of these details, read through our FAQs below to learn and clear up any remaining doubts.
How to get a Direct Deposit Authorization Form?
Whether you are looking to get authorization from someone else to deposit funds into their account, or you want to authorize a third party to send money to your bank account, LawDistrict’s Direct Deposit Authorization Forms can be used. Employing one of these templates makes the document creation process much easier and faster, as they can be filled in online for free by following simple step-by-step instructions.
How long does direct deposit take?
Direct deposits are made electronically, which makes the process faster than using physical checks. On average, they usually only take between one and three business days before the money shows up as a debit on the payee’s account. However, depending on who is sending the funds, they can sometimes take up to five days before being completed.
How to change direct deposit account?
Changing your direct deposit account can be done by filling out a new Direct Deposit Authorization Form. You will need to input the new bank’s name and other related fields, such as the bank’s address, the account type, or other additional information.