Direct deposit

Direct deposit is the electronic delivery of a payment straight into a bank account, using the ACH network. Employers use it for payroll; the government uses it for tax refunds and benefits. In place of a paper check, the payer sends account and routing numbers to their bank, which pushes the funds into the recipient's account on the scheduled date.

Because it rides on ACH, direct deposit follows ACH's rhythms. It runs on business days, not weekends or federal holidays, and the exact posting time depends on when the payer submits the file and how the receiving bank processes incoming batches. Some banks post funds early — a day before the official pay date — when they see the incoming file; others wait for the settlement date.

Splitting a direct deposit — sending part of a paycheck to checking and part to savings automatically — is a standard payroll feature and moves the split before the money is spendable, which is often the point.