Direct Deposit

Business, Legal & Accounting Glossary

Definition: Direct Deposit


Direct Deposit


Full Definition of Direct Deposit


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 ensures 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.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/direct-deposit/
Modern Language Association (MLA):
Direct Deposit. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 23, 2024 https://payrollheaven.com/define/direct-deposit/.
Chicago Manual of Style (CMS):
Direct Deposit. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/direct-deposit/ (accessed: April 23, 2024).
American Psychological Association (APA):
Direct Deposit. PayrollHeaven.com. Retrieved April 23, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/direct-deposit/

Definition Sources


Definitions for Direct Deposit are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 9th February, 2020 | 0 Views.