How to Change Direct Deposit to Another Bank

Direct deposit offers a convenient and secure method for receiving funds directly into a bank account. Individuals often change their direct deposit bank due to opening a new account, seeking better banking services, or relocating. Updating direct deposit information is important to ensure uninterrupted access to funds.

Gathering Your New Bank Account Information

Before initiating a direct deposit change, gathering specific details from your new financial institution is necessary. The bank’s full legal name is required for processing, ensuring funds are routed to the correct entity.

A routing number, also known as an ABA routing transit number, is a nine-digit code that identifies the financial institution. This number helps direct electronic transfers. You can typically find your routing number on the bottom left of your checks, within your online banking portal, or by contacting your bank directly.

Your bank account number, which identifies your specific account, is also required. This number is usually located in the middle section of your checks, after the routing number, or can be found by logging into your online banking account or reviewing a bank statement. Additionally, you will need to specify the account type, such as checking or savings, as this distinction is necessary for proper fund allocation.

Methods for Submitting Your Direct Deposit Change

After gathering all necessary bank account information, you can submit your direct deposit change. Various channels are available depending on the source of your income.

For employment income, the process typically involves your employer’s human resources (HR) or payroll department. Many employers provide a direct deposit authorization form, which you will need to complete with your new bank’s name, routing number, account number, and account type. Some companies utilize employee self-service portals, allowing you to update your banking information online. You would generally log into the portal and navigate to the payroll or direct deposit section to input the new details.

For government benefits, such as Social Security or Veterans Affairs (VA) payments, specific federal portals or forms are used. Social Security recipients can manage their direct deposit information through their my Social Security online account on SSA.gov. Similarly, VA beneficiaries can update their banking details via their eBenefits or VA.gov accounts. If online access is not preferred, these agencies also provide paper forms that can be completed and mailed to the relevant department for processing.

Other income sources, such as investment dividends or annuity payments, often have their own specific procedures for direct deposit changes. This might involve logging into an online brokerage account or contacting the issuing company directly to request a change form.

Verifying Your New Direct Deposit Setup

After submitting your direct deposit change, the update may not be immediate. Processing times can vary, typically taking one to two pay cycles for the new information to become fully effective. This delay allows for the necessary administrative and system updates by the payer.

It is advisable to monitor your new bank account statements closely for the first direct deposit. Confirming that the funds have arrived as expected indicates that the change has been successfully implemented. Until the first deposit is confirmed in your new account, maintaining your old bank account is a prudent measure.

Keeping the old account open temporarily helps prevent any issues with misdirected funds if there are unforeseen delays or errors in the direct deposit transition. If the direct deposit does not appear in your new account within the expected timeframe, you should contact the relevant party. This includes your employer’s HR or payroll department, the issuing government agency, or the company responsible for other income sources to resolve any discrepancies.