Have you ever heard of Direct Deposit? If not, it’s basically a simple way to deposit your money to your bank account, without having to worry about wasting any time or effort to actually go to the bank for such transactions. More and more people are choosing do have their paychecks, payments and such directly deposited through the bank, electronically.
Depositing your money would be made so much easier and you won’t have to be concerned about having to add a bank visit to your schedule of the day or even more troublesome, losing your paycheck! The process of direct deposit also happens to be a lot faster so you will be able to obtain your funds on the same day as they had been deposited.
- 1 Direct Deposit Form Templates
- 2 The Benefits of a Direct Deposit
- 3 Kinds of Direct Deposit Authorization Forms
- 4 Direct Deposit Authorization Form Templates
- 5 Helpful Information on Setting Up Your Direct Deposit Authorization Form
- 6 Direct Deposit Authorization Samples
- 7 A Guide on Filling Out a Direct Deposit Authorization Form
- 8 A Recap – Tips in Filling Out a Direct Deposit Authorization Form
- 9 Generic Direct Deposit Authorization
To make things clearer, let’s have an example. If you are a small business owner, you probably make payments to different people – say, suppliers and employees. With if you set-up a direct deposit arrangement with them, you will be able to send payments to your suppliers and salaries to your employees easily, via direct deposit without having to spend time going to the bank.
All you need to do is enroll or set-up a process with your bank to be able to transfer funds electronically. To be able to do this, though, you would have to fill up a direct deposit authorization form. This would give your bank the authority to deposit funds either from your account or to your account electronically.
To help you out, this article will provide you with much needed information about the advantages of direct deposit and everything about the forms you’d have to fill up. There are different types of direct deposit authorization form templates – payroll direct deposit authorization form, generic direct deposit form, and employee direct deposit form, which will be discussed in more detail further on. So read on and be guided regarding this topic.
Direct Deposit Form Templates
The Benefits of a Direct Deposit
Before moving on to the different forms involved in setting up your direct deposit on your bank, let’s look at the many benefits of making use of this process. As you would see, it would be much more convenient for you to actually choose direct deposit over the more traditional way of physically visiting your bank whenever you need to do transactions.
Here are the different benefits of direct deposit:
- Quicker Access to Money. When you have your paychecks processed through direct deposit, the check gets cleared immediately, which means your money goes straight into your account right away. As soon as your pay has been prepared, it goes straight into your account, which means that you can receive your pay a lot earlier than your coworkers who receive paychecks during paydays.
- Receive Payments Before Holidays. Direct deposit processes are usually made earlier than your paydays, which mean that even if your payday falls on a holiday, you will still receive your pay as it goes straight to your account right after it is processed.
- Get a Chance to Earn Rewards. A number of banks actually offer promotions or reward points to their customers if they add the direct deposit feature to their accounts. You can take advantage of this perk and earn reward points every time you make transactions, which could be beneficial for you in the long run.
- No Maintenance Fees. Direct deposit takes out the need to handle checks, which means you won’t have to pay fees for check handling. It also augments the cash flow of banks so they won’t be charging you for particular banking fees. Monthly maintenance fees may be waived in some cases if you agree to have your paychecks be directly deposited to your account and you might even be eligible for improved interest rates.
- Be More Conscious About Your Savings. You can be able to manage your money a lot better through direct deposit. If you set up your direct deposit to place money into different accounts – the ones you use for spending, the one you use for savings and such, your money will be automatically deposited in them and you will be able to boost your savings in no time.
- Make Payments on Time. Similar with saving, you can set-up your direct deposit so that your payments are deposited from your account at the right times. This would give you a good standing when it comes to payments and you won’t have to worry about delays.
- Be Better at Budgeting. Planning to save up for something special, like a trip, a car or even a house? It would be much easier to do that with direct deposit. All you have to do is open an account and set it up so that part of your paycheck goes directly into that account every payday. In doing this, you will also be able to specify the amount which goes into your spending account and as long as you stick to that, you’d be less likely to overspend on things you don’t actually need.
- It’s Free and Easy. Having direct deposit set-up in your account is absolutely free and without any hidden charges. The same amount of money you receive every payday would be the same as the amount which would be on a check. It’s also very easy to set it up, all you need is to fill out a direct deposit authorization form and submit it to your bank.
- It Saves Time and Money and It’s Environment-Friendly. Direct deposit actually makes payment and bookkeeping processes a lot easier for employers. Having to prepare and give out checks can be very tedious especially if your workplace has a lot of employees. Also, choosing direct deposit eliminates the need for checks, saving a lot of paper and ink, which contributes to saving the environment.
- Never Lose Your Checks. If you choose electronic transactions, you won’t have to worry about handling – or more importantly, losing your checks. Checks can either get lost in the mail or you can even misplace your checks easily.
- Avoid Delays and Increase Productivity. Sometimes paychecks are given at the end of the day, causing employees to have to stay at the office later than they have to just to get paid. This can be both frustrating and inconvenient. Also, employees won’t have to visit their banks just to deposit their checks during breaks or even being absent just to set a visit to the bank. If employees are paid through direct deposit, then they are confident that their pay goes to their account on time.
- Changing Banks Would Be Easier. With direct deposit, changing banks would be an easy process. All you’d have to do is obtain a payroll direct deposit authorization form or an employee direct deposit authorization form, fill it up with your new bank’s details and have your employer reroute your paychecks to your new bank.
- Enjoy Security and Flexibility. You won’t have to ask your employer to issue you a new paycheck in case you lost yours or it got lost in the mail. You’d know where your money goes at all times, even if you’ve chosen to have your pay split into different accounts. Also, it doesn’t just have to be for your paychecks; you can use direct deposit for different purposes.
- Effortless Access to Your Finances. Through online or mobile banking, you can immediately review all the payments which go into your accounts, all you have to do is sign in. This means you won’t have to pour through paper pay slips when you need to review your finances.
- Your Privacy is Ensured. There is no way anyone at work can have access to your financial information since your pay goes straight from your employer to your own personal account.
Kinds of Direct Deposit Authorization Forms
If you plan to go to your bank or to your employer to get a direct deposit authorization form to be able to set-up a direct deposit for your accounts, it would be very helpful to know which of the direct deposit authorization form templates you would need.
Here are the three most common kinds of forms which can be used:
Generic Direct Deposit Form
This is the most widely used form which can be utilized to set-up your accounts to receive deposits or payments or for you to be able to deposit payments for your monthly bills and obligations from your account.
Employee Direct Deposit Form
This form should be filled up by an employee of the company, giving the employer the authority to directly deposit any funds to his/her account, which he/she has to specify in the authorization. When an employee fills up this form, any changes must be immediately informed to the employer so that the changes can be applied before the next payday.
This form also contains options to authorize, revise or cancel direct deposit to the account.
Payroll Direct Deposit Form
This form is similar to the employee direct deposit authorization form and is to be used for the employee’s paycheck to be deposited directly into his/her account.
This is used by the payroll department of a company to keep track of the employees who have given them authorization for direct deposit.
In all the different kinds of forms, you must keep in mind that there is certain information which should be included in them, which you should fill out completely.
- Choices of places to deposit your money (at least 3 different places) and these choices should contain the following:
- Name of the bank or financial institution
- Your Account Number
- The Routing Number
- Boxes for you to tick in order to specify if it is a Savings, Checking or Investment Account.
- The amount to be deposited in each account (this can be the actual amount or a percentage of an amount in the case of monthly paychecks).
- A statement about the supplementary documents you would need along with the authorization form.
Direct Deposit Authorization Form Templates
To give you a better understanding of the different direct deposit authorization form templates, here is a quick run through of the information to be written on the different forms. Keep note though that there may be minor differences as forms come from different organizations and institutions:
Generic Deposit Authorization Form
- Full name
- Social Security Number
- Business Phone Number
- Date of Effect
- Name of Financial Institution
- Account Number
- Type of Account
- Routing Number
- Ownership of Account
Employee Deposit Authorization Form
- Full Name
- Action to be Taken
- Employee’s Signature and Date
- Specific Amount or Percentage
- Bank Name, Address and Phone Number
- Account Type
- Routing Number
- Account Number
Payroll Deposit Authorization Form
- Full Name
- Employee ID Number
- Phone Number or Email Address
- Status of Employee
- Action to be Taken
- Bank Name
- Routing Number
- Account Number
- Account Type
- Percentage or Specific Amount of Pay
Helpful Information on Setting Up Your Direct Deposit Authorization Form
To be able to set up your direct deposit with the bank or with your employer, you would first need to understand all the information in the different forms. Here is some helpful information for you to be able to fill out your forms effectively.
Usually, the authorization comes with boxes for you to tick to choose which action you wish to carry out.
- If you tick AUTHORIZE, that would mean you are giving authority to your employer or to the bank to perform electronic transactions through your accounts.
- If you tick CANCEL, you are then removing the authority of your employer or of your bank to perform direct deposits.
You’d have to write down your name, contact details, and other pertinent information fully.
You’d have to specify details of your account such as the type of account, whether savings, checking or investment. If more than one account, you’d have to include all the details of all the accounts you plan to use for direct deposit.
Simple enough, isn’t it? These are just the basics. Read on for a more comprehensive guide to filling out your direct deposit authorization form.
Direct Deposit Authorization Samples
A Guide on Filling Out a Direct Deposit Authorization Form
Now that you have more useful information about direct deposit and the forms used to apply for it, the next thing to learn about is how to effectively fill out your forms. No matter what direct deposit authorization template you are using, they all require the same steps and relatively the same information.
The most important thing to keep in mind, though is that you would have to fill out ALL the parts with the required information for your form to be valid. Whether you are planning to enroll, cancel or change a direct deposit, a completely filled up form is absolutely needed to ensure a smooth process of transaction and approval.
Also aside from the fact that forms with erroneous or incomplete information will be returned to you, you would also have to use a pen with black ink in filling out the form and be sure that your writing is clear and legible.
There are four main sections in the forms and again, be sure to fill them out completely:
- The Type of Action
Tick the box next to the action you are asking for in the form. This could either authorize, change or cancel the direct deposit process on your account/s.
Sometimes information is written at the beginning of the form so make sure to read all the information and you have understood it.
- Your Identifying Information
This is where you write your full name, social security number, work or business phone number and email address.
Make sure to write your name as it appears in your paychecks or in your bank account and also be certain that your handwriting is legible.
- Your Account Information
This refers to the account which you will use for direct deposit. In the case of numerous accounts, the forms usually include spaces for different account details.
You may have to write down your full name again, along with the details of your account. Be careful in writing down your account number – make sure all the numbers are correct.
There you go! A simple but complete guide for you to aid you in filling up your forms. All you need to do is fill out the forms, submit them and enjoy the benefits of direct deposit.
A Recap – Tips in Filling Out a Direct Deposit Authorization Form
You are now more knowledgeable in the process of direct deposit and all the forms you can encounter when applying for it. To summarize, here are a few important points in filling up your forms to ensure that your application will be approved:
- Read the forms completely and be sure to fill out all the required information.
- Make sure to keep your information private and immediately submit your form as soon as it is complete.
- Follow up your application to check whether you can already use direct deposit.