What is Direct Deposit?

Direct Deposit is an electronic payment from one account to another. The most common form of direct deposit is for paychecks, but can be set up with nearly any type of payment you can receive. 

Direct Deposit works by using the Automated Clearing House (ACH) network, which coordinates payments among financial institutions.

The Benefits of Direct Deposit

Direct deposit of your paycheck is the fastest, safest, and most convenient way to get your hard-earned wages into your checking or savings account. In addition to the speed, security, and convenience it offers, did you know there are even more reasons to choose direct deposit?

  • It saves you money.  Not only are your travel costs associated with getting a paper check to the bank avoided, but many banks also offer discounts or will even waive monthly account fees with a direct deposit.
  • It improves your money management skills. Direct deposit allows you to direct some of your paycheck each pay period to your savings and investment accounts.  This will help you save regularly and frequently, helping you reach your savings goals more quickly and easily.
  • It can earn you rewards. Some banks offer loyalty programs that reward you with points or extra perks when you have a direct deposit.
  • It helps you save the environment. In with the pennies, out with the pounds…by switching to direct deposit, an individual employee, paid every two weeks, can save a pound of paper per year and avoid the release of 1 pound of greenhouse gases into the atmosphere due to the production and travel expenses associated with printing, mailing, and physically depositing paper checks.
  • It provides you peace of mind. Not only is direct deposit safer than paper checks, it's also more reliable.  You can count on your paycheck being deposited even if you aren’t available.  Whether you are on vacation, under the weather, or traveling for work, you’ll have direct access to your funds when and where you need it.

Direct deposit can be used for your payroll checks, Social Security payments and other government benefit checks, and best of all, most employers make signing up for direct deposit of your payroll check easy. Speak with your employer's payroll or human resources department for more details. Usually with your financial institution account number and the institution’s ABA routing number, you can sign up in just a few minutes. For Social Security or other government payments, call or visit their website to get the forms needed to enroll.

How to Set Up Direct Deposit

Setting up Direct Deposit is easy. You'll need to fill out and submit a direct deposit authorization form to your employer (or benefits provider). This form will request four pieces of information that are needed to properly route your payments:

  • United Commonwealth Bank
  • Your account type - typically checking or savings
  • Your account number
  • Your bank's routing number (071108407)

You might be asked to provide a voided check to verify your account and routing numbers (found at the bottom of a check). If you don't have paper checks, you can also get a document from your bank that confirms your account number and the bank's routing number.

For more information on direct deposit, visit https://godirect.gov/