Direct Deposit: As Easy as it Gets


Michael W. Kahn

Michael W. Kahn


Some things in life seem destined to be complicated. Assembling furniture from Ikea? Complicated. Deciphering your cellphone bill? Complicated. The list goes on.

One thing, however, that’s definitely not on that list is Direct Deposit. In fact, starting Direct Deposit is quite easy, whether it’s for payroll, benefits, expenses, refunds, or any other payments you receive. And once it’s set up, you’re done.

What’s involved in establishing Direct Deposit? The procedure could vary from one employer to another, but there are two things you’ll always need: your bank account number and the routing number for your financial institution.

Most banks and credit unions make it easy to find the account and routing numbers on their apps and websites, where a search will generally take you to the information you need. If you have a checkbook, the numbers you need are printed on the bottom of the checks, and your bank, payroll or human resources department—or just a simple Google search—can help you decipher them. Either way, you’ll find those numbers faster than you can figure out how to attach Side Panel D to Bottom Piece R on that bookcase you’re building.

What else is involved? Since all Nacha employees are paid by Direct Deposit, we asked Jennifer Shannon, Nacha’s Director of Human Resources.

“It is a pretty painless process,” said Shannon, noting all employees have access to Nacha’s self-serve portal for payroll, where they can start or change Direct Deposit, or use Split Deposit to put some funds into savings.

No matter whether an individual employer uses a portal or a form, the human resources folks will always help, and regardless of the method, once Direct Deposit is established, it’s done. Your employer will tell you how soon you can expect to begin getting paid electronically. With that, there’s nothing else to do unless you change banks or move to another job. The money will be there on payday. And if you have expenses, your employer can reimburse them using Direct Deposit.

Something else that’s easy about Direct Deposit: building savings. With the Split Deposit feature, you can direct a percentage or fixed amount of your salary to go to a savings account, or a 401(k) every payday. Again, once you set it up, it’s done—no need to revisit it unless you want to make a change.

Direct Deposit is safe and secure. According to the Office of Personnel Management, it’s the way more than 95% of federal retirees collect their benefits. Social Security recipients also overwhelmingly use Direct Deposit. The Social Security Administration reported in September that of the more than 63 million payments it made in the 50 states and the District of Columbia, 99.1% were by Direct Deposit.

Setting up and using Direct Deposit really is a breeze. Now if only putting that bookcase together from those dozen parts was as easy.