What is direct deposit?

Direct deposit refers to a system where funds are electronically transferred into an individual's bank account, typically on a recurring basis, such as with a salary or benefits payments. This method allows for automatic and timely payment without the need for physical checks. It enhances convenience for both the payer and the recipient, streamlining the process of receiving regular income.

This method is especially popular because it eliminates the need to manually deposit checks and reduces the risk of lost or stolen payments. Additionally, it facilitates quicker access to funds, as money is immediately available in the account on the scheduled payment date.

The other options do not accurately represent the concept of direct deposit. For instance, withdrawing cash does not pertain to deposits into an account, one-time payments are not representative of the ongoing nature of direct deposit, and a savings account is simply a type of account used for storing funds rather than a method of transferring money directly into that account.