2a349fec2b49ebb62718b79827a0c18c - Is it possible to deposit funds directly into a savings account?
Direct depositing your paycheck into a bank account saves you time. You won’t need to worry about cashing a paper check or spending time visiting a financial institution to deposit your earnings. Instead, the money is available instantaneously, and you can access it via a debit card or ATM.

Most people deposit their earnings directly into a checking account, but can you direct deposit into a savings account? Keep reading to find out.

What Is Direct Deposit?

Direct deposit involves electronically transferring money from a payer’s account to an individual. The most common type of direct deposit is an employee’s paycheck, although other types of earnings can be directly deposited.

Payers and recipients arrange direct deposit before a pay date. The recipient provides their bank account details to the payer. Once the payer receives the information, they’ll share the direct deposit details with their bank. Once the payer releases the direct deposit, the bank transfers the money accordingly.

Can You Direct Deposit Into a Savings Account?

Yes, most banks allow you to directly deposit your paycheck into a savings account. In some cases, you may be able to split your earnings into two accounts: checking and savings.

If you want to deposit your paycheck into savings, contact your payroll or HR department to update your direct deposit information. If your employer allows you to separate your earnings between accounts, you can do so. Update your deposit details to include both account numbers and how much you want to send to each one.

What Types of Deposits Can Go Into Savings?

You can direct deposit nearly any type of income you receive. Earnings from your job, tax refunds and government benefits are all eligible for direct deposit. Generally, any company or government entity that regularly distributes money can set up your payments for direct deposit.

If unsure whether an entity offers direct deposit, check with their payroll or administrative team. They can let you know their direct deposit options. In general, if an organization offers direct deposit, they likely offer it to both checking and savings accounts.

How To Set Up a Direct Deposit in Your Savings Account

You can follow this simple three-step process if you’d like to set up direct deposit into savings instead of your checking account:

  1. Obtain a direct deposit form from the payer
  2. Indicate how much money you want to go to savings
  3. Provide account verification to the payer

1. Obtain a Direct Deposit Form From the Payer

The payer is the person or entity who provides you with money. Payers include employers and government agencies, such as the IRS. Most payers offer direct deposit options to recipients since it saves everyone time and is safer than paper checks.

Your payer should have a direct deposit form you can fill out. On the form, you’ll list critical information, such as:

  • Your name
  • Address
  • Social Security number
  • Bank account details

To divide your deposits across multiple accounts, ensure you list the correct information for each account.

2. Indicate How Much Money You Want To Go to Savings

If you’re separating your paycheck or other earnings between checking and savings, you’ll want to indicate the amount of money the payer should send to each account. You can set a percentage to go to savings.

Some payers will also allow you to specify a specific dollar amount for one of your accounts. For example, each payday, send $100 to savings and the rest to checking. You can also change your amounts as you need to.

3. Provide Account Verification to the Payer

Your employer or other payer may request you to provide additional verification of your bank account, such as a voided check or a deposit slip. Voided checks and deposit slips confirm that you’re the account holder and give the payer the correct account details. While you may not have checks for your savings account, you should have deposit slips from your bank.

Should You Direct Deposit Into Savings Instead of Checking?

While you certainly can direct deposit into a savings account, is it the best option? Checking and savings accounts serve different functions, so deciding whether to deposit your paycheck or other earnings into savings often boils down to your circumstances.

  • Checking account: Best for everyday financial transactions, such as buying groceries, paying your monthly credit card bill or withdrawing cash from an ATM. Most banks provide checking account holders with a debit card they can use to facilitate their transactions. However, a checking account usually won’t earn any interest, so don’t expect to earn extra money on your available balance.
  • Savings account: Best for people who want to establish an emergency fund or save toward a specific goal, such as a vacation or a down payment on a new house. Most savings accounts allow you to earn a higher interest rate on your balance. However, savings accounts limit your transactions, so you can only make so many withdrawals before you incur a fee.

If you don’t need your money for everyday needs, depositing your earnings entirely into your savings account makes sense. However, if you use some of your income for regular transactions, you should portion your earnings between both accounts according to your goals. For instance, you might deposit 90% of your income into a checking account and send the rest to savings for your emergency fund.

Final Take

Making direct deposits into a savings account is possible, providing the payer offers the option. Keep in mind that most savings accounts have transaction limitations. If you plan to use the money for your daily needs, it may be better to deposit it into your checking account instead.


Here are the answers to some of the most frequently asked questions regarding direct deposit.

  • Is it better to do a direct deposit in your checking or savings account?
    • A direct deposit to checking is best if you use the money for everyday purchases. However, if you want to save the money to work toward a financial goal, consider depositing it into savings instead.
  • What can be deposited into a savings account?
    • You can deposit cash into a savings account. You can also direct earnings from your job, tax refund or government benefits into a savings account.
  • Can I get paid directly into my savings account?
    • Yes, if you prefer to. Check with your employer or other payer to see if they allow direct deposits into savings accounts.

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