THE FACTS: Direct Deposit Saves Time
What is Direct Deposit? Flexibility: If you decide to switch
Direct deposit is the electronic accounts or institutions, it is easy
transfer of your paycheck, to change your direct deposit
benefit check or other payment arrangements. Simply contact
into your checking, share draft your institution and the agency or
or savings account. Instead of organization that issues your
receiving a check in the mail and payment. Both will have forms for
taking it to your financial you to fill out to make it easy. Do
institution, you can rest assured not close the first account until
that your money is in your payments start arriving at the
account. The money is available new account.
to you the morning of the
payment date. What types of payment can be
made by Direct Deposit?
Direct Deposit offers these • Benefit checks from the
benefits: Federal government, such as
Convenience: No more special Social Security, Supplemental
trips to your institution to Security Income (SSI),
Direct Deposit is deposit your check — a nice Railroad Retirement, Veterans
the electronic transfer feature if you are busy, ill, away benefits and Civil Service
of your paycheck, from home, located far from a Retirement payments
benefit check or other branch or in a place where
payment into your
checking, share draft or
parking is hard to find. • Benefit checks issued by State
savings account. governments, including
Reliability: You no longer need to retirement and unemployment
wait for your check to arrive in
the mail. Your money will • Paychecks from your
always be in your account on employer
time. If you move without
changing financial institutions, • Pension payments
you will not have to wait for
your check to catch up with you. • Income from investments
Security: You do not have to • Federal and State income tax
worry about lost, stolen or refunds
misplaced checks.
Updated 01.2020
Will my money be safe? deposit or withdrawal, you
Your money is protected. have 60 days from the date
Government agencies have your statement was mailed to
rules to protect you in case contact your institution. If
of an error. you miss the deadline, your
institution does not have to
The Social Security investigate the problem.
Administration has used
direct deposit since 1976
and has never lost a Once you contact the
payment. Plus, your money institution, it has:
is protected up to $250,000
per depositor if it is • Ten business days to
deposited in a federally investigate the problem
insured institution.
• One business day to
How confidential is direct correct the error after
deposit? finding it
A check may be handled by
as many as 12 people before • Three business days to tell
it reaches a bank account. you the results of the
Most of that is eliminated by investigation
direct deposit, which is
about the most confidential There is an exception:
and efficient way to handle a If the money in question is
payment. returned to your account
within 10 business days of
How can I avoid problems? when you notified the
Keep track of deposits and institution of the error, the
withdrawals. Compare them institution can take up to 45
with your statement. days to investigate. If no error
Immediately contact your is found, the institution may
institution if you find an take back the money in
error. For an error involving question if it sends you a
direct deposit, an Automated written explanation.
Teller Machine (ATM)
Updated 01.2020
