Direct Deposit

Direct Deposit

1. When the tax authorities deposit your tax refund directly into your bank account rather than mailing you a check.

2. When your employer deposits your paycheck directly into your bank account rather than issuing you a physical check.

Notes:

1. It's the fastest way to get your refund back.

2. Direct deposit is often preferable to employees as their pay is immediately available in their accounts. In contrast, salaries paid via check can take a week or more to clear within their account. With the advent of direct deposit and online banking, the need to physically go to your bank has diminished.

See also: E-file, Income Tax, Internal Revenue Service, Refund, Tax Return

---

Direct deposit

A method of payment which electronically credits your checking or savings account.