Direct Deposit Expert Guide - FAQs

Q. How does Direct Deposit work?

Direct Deposit involves communication between financial institutions. A company or government agency authorizes the money to be taken out of its payroll account. The money is then sent to the employee’s credit union for deposit into their account(s). The transactions are done through electronic networks and are fast, reliable, and safe.

Q. Can I trust electronic transfers?

Chances are you already rely on electronic transfer.

When you personally cash a payroll check, electronic networks transfer money from your employer’s account to yours. What’s going on behind the scenes is about the same whether you have Direct Deposit or are cashing or depositing your check in person.

Q. How confidential is direct deposit?

With traditional payroll processing, a check may be handled by as many as 12 people before it reaches a bank account. Most of that is eliminated by Direct Deposit, which is about the most confidential and efficient way to handle a paycheck.

Q. Isn't there less chance of error if the employee personally takes their check to the bank?

With Direct Deposit, the employee’s money simply transfers from one account to another. Physically going to the bank can involve hand written deposit slips, computer entries by a teller, and other manual operations. Speed and accuracy are advantages of Direct Deposit.

Q. If an employee no longer gets a paper paycheck, how do they know how much they were paid and what their taxes were?

They’ll receive a pay “stub” showing all the same information they would receive with a paper check. Your credit union will supply statements showing the record of deposit to their accounts.

Q. How much control does an employee have in choosing where their money is deposited?

Employees control whether they put their pay into their checking or savings account. Their employer decides how many different institutions they can disperse funds into. Once funds are placed into an account at the credit union they can be set up to be automatically placed into several accounts.

You can set up your distribution at the credit union to pay any of your scheduled loan payments or deposit funds directly into a savings or investment account on the date you specify. Ask us about auto pay options and MyBillPay.

Q. How do I get Direct Deposit started?

All you need to do to set up Direct Deposit is complete an enrollment form to authorize your employer to make the Direct Deposit and we take care of the rest. It’s that easy, and it’s free!

For more information, contact your employer and ask them if they have Direct Deposit available or give us a call!

Q. Who is most likely to find Direct Deposit useful?

  • Anyone who would like to save time by eliminating time spent cashing their paycheck.
  • Anyone who wants access to their pay at the earliest possible moment on payday.
  • Anyone who wants to access their pay when they are out sick, on the road, or on vacation.
  • Anyone who wants to have 100% security against damage, loss or theft of their check.
  • Anyone who would like their pay to be as confidential as possible.