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Direct Deposit FAQ

These are Frequently Asked Questions about Direct Deposit. Click on each question to view the answer.

1. What is Direct Deposit and how does it work?
Direct Deposit is a safe, proven, confidential method of receiving a payment. Money is electronically transferred from a company or organization into your checking or savings account.
2. How will I know when my payment has been deposited or the amounts that were withheld from my paycheck if I use Direct Deposit?
Most employers issue a payment stub that is identical to what you receive with a traditional paycheck. It will show how much was deposited in your account and how much was taken out of your pay for taxes, insurance and other items. You may verify your deposit has been made by calling your financial institution or checking your account online with Private PC, our Free Online Banking. Sign up online and get started right away!
3. If I have a problem with Direct Deposit, is it going to be more difficult to rectify than with a traditional paycheck?
First of all, problems with Direct Deposit are rare. In fact, you are much more likely to have a problem with a check. But if any matter should arise, all you need to do is contact your employer or the company that sent you the Direct Deposit payment. The problem can usually be corrected immediately. With Direct Deposit, more people will have access to my personal account information.
4. Will my employer or the company I authorize to make a Direct Deposit be able to take money out of my account?
Direct Deposit is a very confidential way to send and receive payments of all kinds. Although your employer or the company does have a limited ability to reverse your Direct Deposit payment, it cannot access any other funds in your account. On average, fewer people see your account information with Direct Deposit than with checks.
5. Can I divide my pay among different accounts if I use Direct Deposit?
With Direct Deposit, you may have the option of depositing into more than one account. Each employer or company offering Direct Deposit determines how many accounts they will allow.
6. How do I sign up for Direct Deposit?
First, find out if Direct Deposit is offered. If it is available, ask for the authorization form. If Direct Deposit is not available, ask your employer or the company to consider offering it.
7. Can my employer require me to use Direct Deposit for payroll?
Some states do allow companies to mandate Direct Deposit of payroll. However, we believe Direct Deposit is so beneficial that you will want to use it without being prompted. To find out the rules in your state, contact your state's labor department.
8. What additional costs will I incur if I participate in direct deposit?
Your employer usually does not have a charge for Direct Deposit. Check with your employer for details. 121 Financial does not charge any fees for direct deposit.
9. When can I withdraw my money from my account if I use Direct Deposit?
Your funds are available to you when your financial institution opens for business on payday. In many cases, you can even make withdrawals of your funds at ATMs early in the morning – even before your financial institution opens its doors and teller windows for business.
10.How will I ever be able to keep track of the balance in my account?
You should receive a paper or electronic notice of the amount and date the funds will be deposited into your account. Your financial institution must provide you with a way to verify deposits to your account. Many offer automated telephone systems or Online Banking options.
11.Why do companies ask for a voided check?
The Company uses the financial institution identification number and account number that appear on the bottom of your check to set-up the Direct Deposit properly. These numbers can be difficult for consumers to identify, so including a voided check ensures that your deposit will be processed properly.
12.The amount of money I receive is confidential. With Direct Deposit don’t I lose that privacy?
No. In fact, you will likely have more privacy with Direct Deposit. The amount of information provided on a check is astounding, including: your name and signature, date the check was written, to whom it was written, the dollar amount, name and address of the account holder, and the bank identification and account number. With Direct Deposit the transaction passes electronically through the banking system. Multiple levels of security are in place to ensure that your payments are not tampered with or intercepted.
13.Must I have a checking account to use direct deposit?
Some companies offer direct deposit to both checking and savings accounts. You will need to check with each company from whom you will receive a Direct Deposit for their policy.