Direct Deposit
- Direct Deposit is
the electronic transfer of a payment
from your employer into
your checking or savings
account.
- Direct Deposit is a
smart way to get paid. It is ideal
for more than just payroll. Other
applications include expense
reimbursements, tax refunds,
pensions, dividends and bonuses.
Direct Deposit is
safe, confidential, convenient and
fast. Employees who use Direct
Deposit can access their pay in
their accounts at their financial
institution’s opening of business on
payday. For income tax refunds, the
government often makes refunds via
Direct Deposit within days of
receiving returns. With Direct
Deposit there is no waiting for
checks to clear.
- How direct
deposit works:
-
- By completing a
standard enrollment form, you
authorize your employer or
organization to make a Direct
Deposit payment into one or more of
your accounts.
- Your employer or
organization making the Direct
Deposit may perform a test run by
sending your checking or savings
account information, but no dollar
amount, to the Thomaston Savings
Bank via the Automated
Clearing House Network.
- Thomaston Savings
Bank notifies your employer or
organization if the entry can’t be
posted or if any changes need to be
made to the account information.
- After making any
necessary changes, your employer or
organization processes the live ACH
transactions by delivering an ACH
file, usually by transmission,
CD-Rom, or diskette, to its
financial institution. There must be
at least six banking days between
sending the test entry and sending
the first live entry.
- Your employer's or
organization's financial institution
processes the ACH file, extracting
any transactions for accounts at its
institution, and delivers the
remaining transactions for
distribution through the ACH Network
one or two days prior to the Direct
Deposit date.
- On or before the
Direct Deposit date, your employer's
or organization's financial
institution debits their account for
the total amount of the Direct
Deposit transactions that were on
the ACH file.
- Thomaston Savings
Bank receives the Direct Deposit
transactions, credits your account(s)
and reports the transaction(s) on
the your monthly account statement(s).
- Companies and
organizations should provide a paper
or electronic advice of the Direct
Deposit payment to the consumer. In
the case of Direct Deposit of
payroll the advice would include the
same information the company
provides on a paycheck stub,
such as deductions and net pay
amount
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