What's the Deal with Direct Deposit?
What’s the deal with direct deposit?
You probably hear us talking about direct deposit a lot. To be honest, you probably hear every bank talking about direct deposit a lot. But what is it and why are nearly 94% of U.S. employees using it to get their paychecks? We’re so glad you asked…
Table of contents
What is direct deposit?
Why should I set it up?
What perks do I get?
How do I set it up?
When will direct deposit hit my account?
What is direct deposit?
Direct deposit is the fully automated, electronic transfer of wages from your employer or benefits provider to your own bank account(s). When it comes time for payday, your employer or benefits provider issues an electronic payment that is then automatically transferred over to your checking account, or to multiple accounts, depending on how you designate where you want your money deposited. With a simple setup process, you can waive bye-bye (😉) to paper checks, check cashing fees, and trips to the bank, and say hello to a whole slew of benefits.
Why should I set it up?
Oh, direct deposit, how do I love thee? Let me count the ways!
1. Money is automatically deposited in your account
You can check your balance one second, then BOOM, there’s your paycheck, deposited safely and quickly the next. And when your money is direct deposited, you can access that money wherever you are, whenever you need it.
2. No need to cash a check or go to a bank
Make waiting in line to cash a check at the bank, grocery store, or the ATM a thing of the past. Now your money can just be deposited in your account without even having to wait for a check to be mailed to you.
3. Early payday FTW
Direct deposit can make payday come a little sooner. In fact, direct deposit can get your money deposited to your account up to 2 days early and your government benefits up to 4 days early1. You definitely can’t get that with a paper check.
4. Better control of where your money goes
Have a GO2bank account and an account with another bank? You can split how and where you want your money deposited between them! Did you close your other bank account because you realized how awesome GO2bank is? Then you can change your direct deposit to be sent only to your GO2bank account!
5. Avoid monthly maintenance fees
A lot of banks, including GO2bank, charge a monthly fee for you to use your account. But with direct deposit, you’ll routinely have money deposited into your account, waiving your fees, letting you use more of your hard-earned money on what you really want2.
6. More secure while also being more convenient
No checks lost in the mail, no fraudsters signing your name on a stolen check. Just a safer, faster way to get your money the way you want it.
What perks do I get?
You may be saying, “Wait, I get perks just for setting up direct deposit with GO2bank?” You better believe it!
1. Early payday
When you set up direct deposit with GO2bank, you get your pay up to 2 days early and your government benefits up to 4 days early! If you keep push notifications on with your GO2bank app, you can know exactly when your money arrives in your account.
2. No monthly fees
Not today, monthly fees! Whenever you receive a payroll or government benefits direct deposit in the previous monthly statement period, you can kiss your monthly fees goodbye.
3. Overdraft protection
Worried at the register about how much you still have in your account? We’ve got you covered with up to $200 in overdraft protection after opt-in and eligible direct deposit3.
4. Start building credit
After you receive eligible direct deposits, you can easily start your credit building journey by applying for the GO2bank Secured Visa® Credit Card4!
How do I set it up?
Have we sold you yet on the glory of direct deposit? We hope so! Now all you have to do is set it up. Don’t worry, GO2bank gives you everything you’ll need to set up direct deposit with your employer or benefits provider. Be sure to talk to your employer’s or benefits provider’s payroll department for more specific instructions on what they’ll need from you, but these basic steps should help:
1. Just log in to your GO2bank account on the app or website.
2. Go to Move money then “ASAP Direct Deposit™” to find your GO2bank account and routing numbers. Copy both of these to give to your employer or benefits provider. If they request the account type, just enter “Checking.”
3. Follow the instructions provided by your employer or benefits provider. If you need a direct deposit form or want to deposit only a specific percentage or dollar amount of your paycheck to your GO2bank account, you can download a GO2bank direct deposit form and fill in your info.
And you’re done! Then all you’ll have to do is wait for payday, which always feels like it takes forever, right? At least with GO2bank, your money will magically appear in your account up to 2 days earlier than payday, speaking of which…
When will direct deposit hit my account?
Once your setup is complete, your direct deposit will usually start showing up in your GO2bank account within 1-2 payroll cycles. And instead of waiting for your actual payday, we’ll credit the amount to your account as soon as we receive payment instructions from your employer or benefits provider. Since most employers or benefits providers typically notify us about your incoming deposit in advance of your payday, that means your pay will post up to 2 days early, and your benefits up to 4 days early. But please keep in mind – if and how early your deposit posts to your account are completely dependent on when your employer or benefits provider sends us payment instructions, which can also vary from pay period to pay period. If you haven’t received your pay as early as you did the previous pay period, it doesn’t mean something’s wrong or that we’re holding on to it. It just means we haven’t received it yet. But rest assured, we want to get you your hard-earned money into your account as quickly and securely as possible.
Want to add even more excitement to your new direct deposit life? Turn on direct deposit notifications! Just log in to your account, select “Menu,” then “Notifications,” and tap “Direct deposit posted.” Then you can get push notifications, text messages, and/or emails letting you know the second your pay posts to your account!
Please note: The name and Social Security number on file with your employer or benefits provider must match your GO2bank account exactly or we won’t be able to make your deposit.
