National Direct Deposit Month
May 1, 2006 03:06 PM
According to the National Automated Clearing House Association (NACHA), May is National Direct Deposit Month. Throughout this month various types of businesses will be encouraging the use of direct deposit and direct payment instead of paper checks.
Since May 1, 2003 NEBF requires all pension benefits to be electronically deposited. Any bank, credit union, or other financial institution that is a member of NACHA can receive your pension benefit electronically, from us.
Here's how the Direct Deposit process works: once we receive your completed direct deposit form that authorizes us to make a Direct Deposit into your account, we then perform a test run with no dollar amount to make sure that the account information is accurate. Then we process the payment by direct deposit—also known as an Automated Clearinghouse (ACH) transaction. Your financial institution then credits your account and the transaction is reported on your monthly statement.
If needed
click here to download one of our Direct Deposit Authorization forms.
Direct Deposit FAQ's
What is Direct Deposit?
Direct Deposit is the process of sending payments such as paychecks, pension benefits, and even dividends electronically to a checking or savings account. No paper check is issued.
Our direct deposit process is simple: once we receive your direct deposit form, we perform a test run with no dollar amount to make sure that account information is accurate. We then process the payment by direct deposit-also known as an Automated Clearinghouse (ACH) transaction. Your financial institution then credits your account and the transaction is reported on your monthly statement.
Why should I use Direct Deposit?
As of May 1, 2003 NEBF requires all participants to receive pension benefits via direct deposit. Did you know that direct deposit is more secure than issuing a paper check? With direct deposit you do not have to worry about postal delays or waiting in line at the bank. In fact, direct deposit may help you earn more interest because it is deposited earlier and stays in your account longer. And you don't have to be in town to receive your payment.
Direct Deposit also lowers your risk of having your check stolen. According to NACHA, direct deposit lowers the risk of criminals forging stolen checks and obtaining individuals' account information. The National Check Fraud Center notes that check fraud and counterfeiting produce approximately $10 billion in losses each year.
Your privacy also increases with direct deposit. Computers process the payments-not people. Multiple levels of security protect your payment as it goes to your bank account.
What if I change banks?
If you change banks, simply send us a new direct deposit form. Click here to download one of our Direct Deposit Authorization forms. After we receive and review your new direct deposit form your next monthly paymentwill be sent to your new bank account.
Here's some essential information for those who retired prior to May 1, 2003 and are not using Direct Deposit. We hope that these three beneficial features of Direct Deposit will convince you to sign up today:
Direct Deposit is simple.
Once you have signed up for direct deposit, you don't have to go to the bank to deposit checks.
Your money is automatically deposited into your account on time, every time - and you don't have to be in town to make a monthly deposit!
Direct Deposit is safe.
Direct deposit is confidential. Money is transferred electronically and passes through fewer hands than a check.
Direct Deposit is smart.
Direct deposit gives you access to your money earlier than check deposits. You don't wait for checks to clear.
Direct deposit puts you in charge of your money.
Many financial institutions offer free checking or other account benefits to customers who use direct deposit.
Did you know that Direct Deposit has been around for more than 30 years? And it has a proven record of success.
Sign up today by clicking here to download one of our Direct Deposit Authorization forms.
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