What is Direct Deposit?
Direct Deposit is the electronic transfer of your paycheck, benefit check, or other payment into your
checking account, credit union, or other designated electronic transfer account. Instead of receiving a
check in the mail and taking it to the bank, 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 the bank or credit union to deposit your check.
- 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.
- Security. You do not have to worry about lost, stolen, or misplaced checks.
- Flexibility. If you decide to switch accounts or institutions, it is easy to change your direct deposit
arrangements. Simply contact the bank and the Commission's payroll department. Both will have
forms for you to complete.
What types or payments can be made by Direct Deposit?
- Your paycheck from the Commission or other employer.
- 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 issues by state governments, including retirement and unemployment.
- Income from investments
- Federal and state income tax refunds.
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 a payment has never been lost. Most
banks insure up to $100,000 of your money. Direct deposit is safer than getting a check because fewer
people are involved in the process.
How can I avoid problems?
Keep track of deposits and withdrawals. Compare them with your statement. Contact your bank or other
institution immediately if you find an error. Generally, you have 60 days from the date your statement
It is mandatory that all retirees sign-up for Direct Deposit in order to receive their monthly annuity. If
you are a retiree and you are making any changes in direct deposit, please contact the Employee Retirement System (ERS).
For more information contact Payroll at 301-454-1569