Updated 01.2020

THE FACTS:

Flexibility: If you decide to switch 

accounts or institutions, it is easy 

to change your direct deposit 

arrangements. Simply contact 

your institution and the agency or 

organization that issues your 

payment. Both will have forms for 

you to fill out to make it easy. Do 

not close the first account until 

payments start arriving at the 

new account.

What types of payment can be 

made by Direct Deposit?

• Benefit checks from the 

Federal government, such as 

Social Security, Supplemental 

Security Income (SSI), 

Railroad Retirement, Veterans 

benefits and Civil Service 

Retirement payments

• Benefit checks issued by State 

governments, including 

retirement and unemployment

• Paychecks from your 

employer

• Pension payments 

• Income from investments

• Federal and State income tax 

refunds

Direct Deposit Saves Time

What is Direct Deposit?

Direct deposit is the electronic 

transfer of your paycheck, 

benefit check or other payment 

into your checking, share draft 

or savings account. Instead of 

receiving a check in the mail and 

taking it to your financial 

institution, you can rest assured 

that your money is in your 

account. The money is available 

to you the morning of the 

payment date.

Direct Deposit offers these 

benefits:

Convenience: No more special 

trips to your institution to 

deposit your check — a nice 

feature if you are busy, ill, away 

from home, located far from a 

branch or in a place where 

parking is hard to find.

Reliability: You no longer need to 

wait for your check to arrive in 

the mail. Your money will 

always be in your account on 

time. If you move without 

changing financial institutions, 

you will not have to wait for 

your check to catch up with you.

Security: You do not have to 

worry about lost, stolen or 

misplaced checks.

Direct Deposit is 

the electronic transfer 

of your paycheck,

benefit check or other 

payment into your 

checking, share draft or

savings account. 
Updated 01.2020

Will my money be safe?

Your money is protected. 

Government agencies have

rules to protect you in case 

of an error.

The Social Security 

Administration has used 

direct deposit since 1976 

and has never lost a 

payment. Plus, your money 

is protected up to $250,000 

per depositor if it is 

deposited in a federally 

insured institution.

How confidential is direct 

deposit?

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 

payment.

How can I avoid problems?

Keep track of deposits and 

withdrawals. Compare them 

with your statement. 

Immediately contact your 

institution if you find an 

error. For an error involving 

direct deposit, an Automated 

Teller Machine (ATM) 

deposit or withdrawal, you 

have 60 days from the date 

your statement was mailed to 

contact your institution. If 

you miss the deadline, your 

institution does not have to 

investigate the problem.

Once you contact the 

institution, it has:

• Ten business days to 

investigate the problem

• One business day to 

correct the error after 

finding it 

• Three business days to tell 

you the results of the 

investigation

There is an exception:

If the money in question is 

returned to your account 

within 10 business days of 

when you notified the 

institution of the error, the 

institution can take up to 45 

days to investigate. If no error 

is found, the institution may 

take back the money in 

question if it sends you a 

written explanation.