Direct Deposit Requirements Explained: What Counts and What Doesn't

The most common requirement for bank account bonuses is setting up direct deposit. Sounds simple enough — but what exactly counts as a "direct deposit"? Can you transfer money from another bank? Does a Venmo payment work? The rules aren't always clear, and getting it wrong means missing out on your bonus.

What Is a Direct Deposit?

A direct deposit is an electronic transfer of funds into your bank account, typically from an employer, government agency, or other institution. When banks require a "direct deposit" for their bonus, they're generally looking for ACH (Automated Clearing House) transfers that are coded as payroll or government payments.

What Definitely Counts as Direct Deposit

• •Payroll deposits from your employer — This is the gold standard. If your employer offers direct deposit, this is the most reliable way to meet the requirement.
• •Government payments — Social Security, tax refunds, unemployment benefits, and military pay all count.
• •Pension and retirement distributions — Regular pension payments deposited electronically qualify.
• •Gig economy payments — Payments from platforms like Uber, Lyft, DoorDash, and Instacart that are sent via ACH typically count.

What Might Count (Depends on the Bank)

This is where things get interesting. Some banks have loose definitions of "direct deposit" and will accept any ACH transfer, while others are strict about requiring employer payroll. Here's what falls in the gray area:

• •ACH transfers from other banks — Transfers from accounts at banks like Ally, Marcus, or Discover are sometimes coded as ACH credits and may trigger the bonus. This is often called a "fake" direct deposit.
• •PayPal and Venmo transfers — Transfers from PayPal to your bank account are ACH-based and work at some banks. Venmo direct deposit (through their paycheck feature) is more likely to count.
• •Cash App deposits — Cash App offers a direct deposit feature with its own routing number that works at many banks.
• •Investment account transfers — ACH transfers from brokerages like Fidelity or Schwab sometimes count.

What Doesn't Count

• •Wire transfers — Even though wire transfers move money electronically, they use a different system than ACH and are not considered direct deposits.
• •Cash deposits at a branch or ATM — Physical deposits don't count, even if they're large.
• •Check deposits (mobile or in-person) — Depositing a check, whether physically or via mobile app, is not a direct deposit.
• •Internal transfers — Moving money between accounts at the same bank never counts.
• •Zelle payments — Zelle uses a different payment network and is not coded as a direct deposit.

How to Set Up Direct Deposit

Setting up direct deposit with your employer is usually straightforward:

• •Get your new account's routing number and account number (available in your online banking dashboard or on your checks).
• •Log into your employer's payroll portal (like ADP, Gusto, or Workday) or contact your HR department.
• •Add your new bank account as a direct deposit destination. You can usually split your deposit — sending a portion to your new account and the rest to your existing account.
• •Submit the change. Most employers process direct deposit changes within 1-2 pay cycles.
• •Verify the deposit arrived. Check your new account after your next payday to confirm the direct deposit posted correctly.

What If You Don't Have an Employer?

Self-employed individuals, freelancers, and retirees can still meet direct deposit requirements. Here are some options:

• •If you receive Social Security, pension, or government benefits, set up direct deposit through the paying agency.
• •If you freelance through platforms (Upwork, Fiverr, etc.), set up ACH payments to your new bank account.
• •If you're self-employed and pay yourself through a business account, set up a recurring ACH transfer from your business bank to your personal account.
• •As a last resort, try an ACH transfer from another personal bank account. Check data points from other users to see if the specific bank accepts ACH transfers as direct deposit.

Understanding the Dollar Amount Requirement

Pay close attention to how the requirement is worded. There's a big difference between these common phrasings:

• •"$500 direct deposit" — Usually means a single deposit of $500 or more.
• •"$500 in direct deposits" — Could mean cumulative deposits totaling $500 (e.g., two deposits of $250).
• •"$500 monthly direct deposit" — Means $500 per month, which may need to continue for multiple months.
• •"$500 direct deposit within 60 days" — The total must be reached within 60 days of account opening.

When in doubt, aim to exceed the minimum requirement. If the bonus requires $1,000 in direct deposits, try to deposit $1,200+ to be safe. And always check the specific terms on the bank's website — we provide the key details on each offer page, but the bank's official terms are the final word.