What is the term for the automatic electronic deposit of net pay to an employee's designated bank account?

• A. Direct Deposit
• B. Emergency Fund
• C. Endorse
• D. Interest

Answer: (A)

Direct deposit is the automatic electronic transfer of your net pay from your employer to your designated bank account. It happens through the ACH network, so you don’t receive a physical paycheck and funds arrive on payday directly into your account. To set it up, you typically provide your bank routing and account numbers, and you can often choose to split the deposit across accounts if you want. The main benefits are convenience, faster access to funds, and reduced risk of lost or stolen checks.

Emergency Fund refers to savings set aside for emergencies, not payroll deposits. Endorse means signing the back of a check to authorize its cashing or deposit. Interest is the earnings you receive on money already deposited, not the act of getting paid from work.