Direct deposit authorization form

This article is general information. Bank and payroll rules vary, so follow the specific instructions from your employer, payer, or bank when you set up direct deposit.

What a direct deposit authorization form is

A direct deposit authorization form gives a payer permission to deposit funds electronically into your bank account. Most people fill one out when they start a new job so their paychecks arrive in their account automatically each pay period. The same form is used for other recurring payments, such as government benefits, a pension, a tax refund, or payments to a contractor.

The form does two things. It collects the banking details the payer needs to route the money to the right account, and it records your consent to receive payments this way. Once it is set up, you no longer have to deposit a paper check, and the money is usually available faster.

What to include in a direct deposit form

A complete direct deposit authorization form is short but exact, because a single wrong digit can send money to the wrong place. Include each of these:

• Your details. Full name, address, and often an employee or account identifier from the payer.
• Bank name. The name of the financial institution that holds your account.
• Account type. Whether the account is checking or savings.
• Routing number. The nine-digit number that identifies your bank. In Canada this is the transit and institution number.
• Account number. The number for your specific account.
• Deposit split (optional). If you want the money divided between accounts, the amount or percentage for each.
• Authorization statement. A line confirming you authorize the payer to deposit funds and, if needed, correct errors.
• Signature and date. Your signature approving the setup.

Many employers ask you to attach a voided check or a bank-issued direct deposit letter so they can confirm the numbers. See our guide on how to write a void cheque if you need one.

Free direct deposit authorization template

Copy the template below, or open it in the fill tool and type your details onto the page. Every blank line is a field you complete.

DIRECT DEPOSIT AUTHORIZATION

EMPLOYEE / PAYEE
  Name: _______________________________________
  Employee or account ID: ____________
  Address: ____________________________________

BANK ACCOUNT
  Bank name: __________________________________
  Account type:  [ ] Checking   [ ] Savings
  Routing number (or transit / institution): ____________
  Account number: ____________________________

DEPOSIT INSTRUCTIONS
  [ ] Deposit my full net pay to the account above
  [ ] Split my deposit:
      Account 1: ____________  Amount / percent: ____________
      Account 2: ____________  Amount / percent: ____________

AUTHORIZATION
  I authorize the payer named above to deposit funds directly into the
  account listed. If funds are deposited in error, I authorize the payer
  to correct the error. This authorization stays in effect until I cancel
  it in writing.

SIGNATURE

Signature: ____________________   Date: ____________
Print name: ________________

[ ] Voided check or bank letter attached

How to fill out a direct deposit form step by step

1. Open the template in the fill tool. Load it into the fill a PDF tool, or start from a form in the templates library so the labels are in place.
2. Enter your details. Type your full name, address, and any employee or account identifier the payer uses.
3. Find your banking numbers. Look at a check, your bank app, or a bank statement. The routing number is the nine-digit number, and the account number identifies your specific account. In Canada, use the transit and institution numbers.
4. Choose the account type. Tick checking or savings so the deposit goes to the right kind of account.
5. Set any split. If you want part of your pay in a second account, fill in the split section with the amounts or percentages.
6. Read the authorization. Confirm you agree to the deposit and to any correction of errors, since that is what you are approving.
7. Attach a voided check if asked. Many payers want a voided check or a bank letter to confirm the numbers.
8. Sign, date, and submit. Add your signature with the sign a PDF tool, download a clean copy, and give it to your payer. Keep a copy for yourself.

Where to find your routing and account numbers

You need two numbers to set up direct deposit, and both are easy to find. On a US check, the routing number is the first nine-digit number printed along the bottom left, and the account number is the set of digits next to it. Your bank app and monthly statement also list them. In Canada, you use a transit number and an institution number together in place of a US routing number, plus your account number, and a void cheque or a direct deposit form from your bank shows all three. If you are unsure which number is which, your bank can confirm them, and it is worth double-checking, because an error sends your money to the wrong account.

Direct deposit in the US vs Canada

The idea is identical, but the banking details differ. In the United States, direct deposit runs through the ACH network, and you provide a nine-digit routing number and your account number. In Canada, electronic deposits use the transit number, the institution number, and the account number, and banks often provide a ready-made direct deposit form or a void cheque you can hand to your employer. In both countries the process is the same for you: give the payer your correct banking details, sign the authorization, and the money starts arriving in your account.

Why employers and payers prefer direct deposit

Direct deposit is popular for good reasons on both sides. For you, the money arrives on payday without a trip to the bank, it cannot be lost or stolen in the mail like a paper check, and funds are usually available quickly. For the payer, it removes the cost and hassle of printing and mailing checks and makes payroll more reliable. Once it is set up, it runs quietly in the background, which is why most employers offer it and many prefer it.

Changing or canceling direct deposit

If you switch banks or close an account, update your direct deposit before the change takes effect, so a payment does not go to a closed account. To change it, fill out a new authorization form with the new account details and give it to your payer, and confirm when the change starts. To cancel, notify the payer in writing. Keep the old account open until you see the first payment land in the new one, so you do not miss a paycheck during the switch.

Keep your banking details safe

A direct deposit form contains sensitive banking numbers, so treat it carefully. Only give it to a payer you trust, such as your actual employer's payroll department, and be cautious of anyone who requests your banking details unexpectedly. When you fill the form out digitally, use a tool that keeps the file private. Our fill a PDF tool processes the document in your browser, so your account and routing numbers stay on your own device rather than being uploaded to a server. Browse the templates library for related payroll and banking forms, and add your signature with the sign a PDF tool before you download.