# Direct Deposit

*Everyday Money — Finicade finance glossary*

Direct deposit is an employer paying you electronically straight into your bank account rather than by check. It typically clears one to two days faster than a paper check, costs nothing, and can't be lost. Its underrated use is splitting: most payroll systems let you route a fixed amount or percentage to a second account, which is the simplest automation in personal finance — savings leave before you ever see them, so the decision to save is made once rather than monthly.

**Also known as:** ACH deposit, salary deposit, BACS payment

**Related terms:** [Checking Account](https://finicade.com/glossary/checking-account), [ACH](https://finicade.com/glossary/ach), [Payroll](https://finicade.com/glossary/payroll), [Autopay](https://finicade.com/glossary/autopay)

Source: https://finicade.com/glossary/direct-deposit