Direct deposit

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Direct deposit

A method of payment which electronically credits your checking or savings account.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Direct Deposit

An electronic service in which a payment, especially but not limited to a paycheck, pension, or tax refund, is transferred immediately into the recipient's bank account. The direct deposit replaces a check for which the recipient would otherwise have to wait to arrive in the mail. A direct deposit service also allows the recipient to have access to his/her funds immediately without waiting on the holding period, which is required for many check deposits.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Direct deposit.

Direct deposit is the electronic transfer of money from a payer, such as your employer or a government agency, directly into a bank account you designate.

Direct deposit is faster and cheaper than sending a check and also more secure, which is why both payers and banks prefer this system. In fact, banks often provide free checking or other benefits if your paychecks are deposited directly.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
In addition, setting up automatic deposits will make it easier to save on a regular basis.
Most participants in the U.Fund plan use automatic deposits to bolster their college savings accounts, he said.
The automatic deposits that Region IV said were coming in haven't hit the account yet.
Thames said the trend toward Internet banking is similar to the rise of ATMs in the early 1980s and later regional ATM access, debit cards and automatic deposits and payments.
"I made a lot of mistakes, but I owned up to them and moved on." She suggests making automatic deposits into a 401(k), IRA, and savings account.
All of these options can be linked to your current checking account to make automatic deposits. These accounts have no fees and Iow minimum balance requirements.'s E-ZVest program allows users to make automatic deposits in their brokerage accounts, from which they can purchase fractions of stocks through dollar cost averaging--buying stocks by investing the same amount of money at regular intervals (monthly or quarterly).
Custodial accounts for the Young Investor fund (; 800-403-KIDS) can be started with as little as $100, which requires automatic deposits of $50 a month thereafter.

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