Direct deposit has replaced paper paychecks as the most common way to get paid. You can get your paycheck automatically transferred into a checking or savings account—you’ll have to give your employer your bank information to get set up. While not all employers offer direct deposit, most employers with more than five employees will.

Using direct deposit is a safer and easier way to get paid than paper checks. You don’t have to worry about loss or theft of paychecks and the funds will hit your account on the same day you get paid. It could also save you a trip to your bank or check-casher. You can also get other payments, such as tax refunds and federal benefits, direct deposited into your bank account. If you haven’t signed up for direct deposit, talk to the person who handles payroll at your job today.

Some employers are also sponsoring a form of prepaid cards called payroll cards to allow their employees to get their paychecks through direct deposit. These employers work with banks or credit unions to sponsor accounts and debit cards so that employees can access their paychecks.

What information do you need to arrange direct deposit?

In order to get direct deposit, you need to provide both the number on your bank account and something known as the bank routing number. This is a number assigned to each financial institution and serves as the electronic address for that institution. If you have a checking account, you can find your routing number on your checks. This will be the first string of numbers at the bottom of your check, followed by your account number and then by the check number. If you don’t currently have a checking account, you can also call your bank or credit union and ask them for the routing number.

Most employers will agree to split your paycheck into more than one account. So if you want to commit to save $200 each month in a higher interest savings or money market account and send the rest to your checking account to live on, you can ask your employer to set up your direct deposit with multiple accounts. This can be a great tool for building your savings. It helps you to make a decision only once to meet monthly savings goals and then live within a reduced budget.

Beginning in 2007, the IRS plans to allow tax filers to “split” their tax refund into more than one account. You can identify what portion of your return you want in a checking account or debit card, and what portion you may want to put into a savings account. Many community-based free tax preparation sites and some commercial tax preparers are partnering with financial institutions to offer attractive savings accounts to meet your needs.