Direct Deposit

Direct Deposit is a method for employers and government agencies to pay out funds for payroll, pensions, retirement, and Social Security electronically without issuing paper checks. This system has been successfully operating safely and efficiently for over 30 years. It provides many advantages for all parties involved by streamlining the payment process. Direct Deposit along with EQUINET™ Online Banking services and a VISA® Debit Card provides you flexible and convenient banking 24 hours a day.  

Simplicity

Direct deposit is easy for employers and employees to set up. In most cases, employees or pension recipients must complete a standard Direct Deposit Form with their payroll department, sometimes available online, indicating their bank account and routing number, and attach a voided check. Typically, direct deposit takes one to two pay periods to begin.

Safety

Direct deposit is safe and secure; the payments do not get lost or stolen. The process involves using an ACH system, which banks use to transmit and receive payments regularly. The payroll department electronically sends the direct deposit file to the bank; the latter confirms its receipt and ensures it's ready for payment. Since no paper checks are involved, direct deposit lowers the likelihood of forgery, stolen checks and counterfeit.

Convenience

Direct deposit saves employees and pension recipients from having to make trips to the bank to cash their checks. Employees can easily control and allocate the monies going into their various accounts; employers usually allow employees to set up more than one account for direct deposit.

Employees usually have to wait until payday to cash live checks. Direct deposit files are usually sent to the bank a day or two in advance. This advance processing usually results in employees receiving their pay at the open of business on payday.