Printable Direct Deposit Authorization Form (MS Word)
- 1 Templates for Direct Deposit Forms
- 2 Advantages of Direct Deposit
- 2.1 Quick Access for money:
- 2.2 Payment Received on Holidays:
- 2.3 Earn Points:
- 2.4 Maintenance is free:
- 2.5 Consider Your Savings More Often:
- 2.6 Payment on time:
- 2.7 Better Budgeting:
- 2.8 Free and Easy:
- 2.9 Environment Friendly:
- 2.10 No chance of Losing Checks:
- 2.11 Avoid Delay and Increase Productivity:
- 2.12 Easy to Change Banks:
- 2.13 Effortless Access to Finances:
- 2.14 Ensure Privacy:
- 3 Types of Direct Authorization Forms
- 4 Conclusion:
A direct deposit authorization form is a document that authorizes a third party like an employer for payment. Similarly, an employer sends money to the bank. Further, it includes the name of the account, routing number and account number. IF you ever heard about the deposit slip? It’s a process of sending money to the bank and you don’t need to waste your time. In Addition, many people are adopting such ways to have paychecks, payments and direct deposits to bank electronically.
This is nowadays easy to deposit your money. Similarly, you don’t need to visit a bank. You don’t need to schedule a day for banking purposes. Further, you can do everything while sitting at home and the good thing is the same day your money will deposit in your account.
Let’s explain it with the example of the process of bank deposit. For instance, you are a small business owner and you have to give payments to your suppliers and employees. Further, the easy way is to adopt a direct transfer management system. Through this way, the money will directly transfer in the suppliers’ accounts and salaries to your employees’ accounts. For this purpose, you have to fill deposit authorization form. This will authorize the bank to deposit money either from your account or to your account electronically.
Templates for Direct Deposit Forms
There are online templates available that are free to download. For any business owner, it’s an ideal situation to deposit form in the bank and authorize the bank to transfer money to their suppliers and employees salaries. These templates are easily available from any related website and you can customize them as per your requirements. You may also like Bank Deposit Slip Templates.
Advantages of Direct Deposit
Let’s look at the benefits of direct deposit as compare to visit the bank for transactions. For this purpose, you have to deposit a form for direct transfer to your account. This authorizes the bank to transfer money in your account without visiting a bank for a transaction.
Quick Access for money:
When you have paychecks through direct deposit, the money goes to your account immediately. Further, when your payment is ready, it can go into your account the same day. While for those who don’t have direct paychecks, they have to wait and visit the bank to transfer their salaries in few days.
Payment Received on Holidays:
If you have a direct deposit facility, you can get your pay even on holidays. Similarly, for those who don’t have direct deposits, they visit the bank and paychecks will take days. When there is a holiday, they have to wait to transfer their salaries. The direct deposit account holder employees will get their salary directly in their account on holidays as well.
Most banks give you promotions or reward points if you have a direct deposit facility. Further, your bank will provide you with points whenever you do transactions. As a result, this will give you benefit in the long run.
Maintenance is free:
Direct deposit provides you with the facility to direct handle paychecks. However, they don’t need to pay a fee for check handling. It also enhances the cash flow of banks and they will not charge any specific banking fees. Further, the monthly maintenance fee will be waived if agree to transfer your paychecks to your direct deposit account. As a result, you will be eligible for more improve interest rates.
Consider Your Savings More Often:
You can manage your money in a better way with a direct deposit. Moreover, if you set up your direct deposit in different accounts. Further, the ones you use for spending and the other for savings. Ultimately funds will transfer directly into them. You will boost your savings in no time.
Payment on time:
Similar to savings, you can set up your direct deposit so that payments are deposited from your account at the right times. Moreover, you will get a better understanding of payments and you don’t need to worry.
With the direct deposit, you can avail a trip, car or housing as well. Al you have to do is open your account and manage part of it goes directly into your account every payday. Further, by doing this you will be able to specify the amount that goes into your spending account. As a result, you can spend less overspending on things where you don’t need.
Free and Easy:
Doing direct deposit in your account is very easy and without any hidden charges. However, the amount you receive on payday is the same amount you will receive in your account. Further, it’s easy to set up. You just need to fill direct deposit authorization form and submit it to your bank.
Keeping direct deposits is very easy and saves a lot of bookkeeping processes for employees. Keeping checks and give to everyone is very tedious when you have a lot of workers in your company. Further, if you choose direct deposit, you eliminate the need for checks which is a saving of paper and ink. As a result, it contributes to saving the environment.
No chance of Losing Checks:
Online transactions provide you facility that you don’t need to worry about losing checks. However, there is a possibility you lose a check in the mail or it misplaces in the bank.
Avoid Delay and Increase Productivity:
You receive paychecks at the end of the day. You have to wait at the office later than they have to pay. This is frustrating and inconvenient. Further, employees can’t manage easily to go to the bank to deposit the checks and being absent for just a visit to the bank. Therefore, employees who got the direct deposit, are confident that their salaries will transfer to their account on time.
Easy to Change Banks:
If you have a direct deposit facility, it’s easy when you change your bank. Similarly, you just need to fill payroll authorization form or employee authorization form. Fill it with your new bank details and your employer reroute your paychecks to a new bank.
Effortless Access to Finances:
Through online or mobile banking you can review your payment at any time in your account. However, you just need to sign in. On the other hand, you have to fill paper payslip when you need to review your account.
If you have a direct deposit, no one at the workplace can access your financial information. You know that your salary with go through your employer to your bank account. You may also see Checkbook Register Templates.
Types of Direct Authorization Forms
If you are planning to go to the bank for direct deposit or your employer is willing. You just need to know that which authorization form you need to fill. There are few common kinds for use.
Generic Direct Deposit:
This is the most common form which is used to set up your account to receive deposits or payments or easy for you to pay your monthly bills or belongings from your account.
Employee Direct Deposit:
This is a form in which an employee of the company fills the form. Moreover, he authorizes an employer to directly deposit funds in his/her account and specify his/her authorization. If there are changes in the form, it’s informed to the employer so that it will update before the next payday. This form contains options of authorizing, revise, approve and cancel direct deposit to the account.
Payroll Direct Deposit Form:
This form is common to the employee direct deposit authorization form. Its common use is to deposit an employee’s paycheck directly into his/her account. The payroll department normally uses this form because they keep tracking of employees who have authorized them for direct deposit.
In all different kinds of forms, this information is common that should be filled out carefully.
Choices for places to deposit your money(at least 3 different places) and contain the following information.
- Name of the Bank
- Account Number
- Routing Number
- Click the boxes whether it savings, Investment or Checking account
- The amount deposit in each account(It’s complete money or a percentage of the money in paychecks)
- Statement about supplementary document along with the authorization form.
A direct deposit authorization form is a document that authorizes an employer or third party for payment. Further, through employer money goes into employees’ accounts. You don’t need to visit a bank and the salary comes directly into your account. Moreover, through the authorization form, you authorize the bank to take care of your account. In Addition, if it’s holidays you can get funds into your account through direct deposit. On the other hand, employees who don’t have direct deposits, need to visit the bank for their paychecks. There are a lot of authorization forms as per your requirement. You can fill direct deposit form, generic form and direct payroll form whatever suits your needs.