By Lori Tucker, United Bank Chief Experience Officer
Direct deposit is an essential, foundational tool in today’s payment cycle. Whether receiving payroll disbursements, reimbursements or monthly federal benefits, United Bank recommends all customers request payment via direct deposit. Check out the benefits:
- Direct Deposit is safe and secure: Payments are delivered electronically through the Federal Reserve’s Automated Clearing House (ACH). At United Bank, we receive three electronic files of payments from the Fed throughout the business day for immediate posting to customer accounts. These files contain both credits and debits (drafts).
- Get access to funds faster: United Bank posts ACH credits one day earlier than the effective date. So, if you typically get your physical paycheck on a Friday, the ACH credit will post to your account on Thursday night, making your funds available to cover any incoming checks or debits posting to your account that night. This can help prevent overdraft or NSF fees if your cash flow is tight.
- It’s just easier: When you receive a paper check, you must either visit a bank office or make the deposit through the mobile app. With direct deposit, you can let the electronic payment system do all of the work. You can also ask your employer to split your payment between a checking and a savings account. It’s a great way to meet your personal savings goals.
For our small business customers who pay employees regularly, direct deposit offers benefits for your company, too:
- Employees don’t have to go to the bank: Make their lives a little easier and give them access to the payroll funds faster.
- Reduce the costs associated with checks: There are costs in the printed checks, the time to prepare them, the task of reconciliation, potential stop payment fees for lost checks and more.
- Environmentally responsible: A reduced amount of paper is good for all of us.
- Reduced fraud: In recent weeks, we’ve seen an increase in check fraud associated with altered checks. Unfortunately, anyone can pick up a check drawn on your account and use that information to create a counterfeit check. Today’s crooks are stealing checks from mailboxes used for outgoing mail, using chemicals to ‘wash’ the check and change the dollar amount or payee.
- Another tip: Businesses can use electronic bill pay to send payments to regular vendors and suppliers. This is another way to minimize the number of checks floating around the payment system.
Customers, ask your employer to provide direct deposit of your payroll disbursement. Your employer will need United Bank’s routing number (061107515) and your checking account number.