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Direct Deposit and ACH Transfers

With direct deposit, saving money is much easier. Your payroll, retirement, Social Security, or other recurring checks can be electronically deposited into your DCU accounts. There are no lunch-hour lines, postal delays, or theft to worry about. Your money is in your account and ready to use. This section of StreetWise explains direct deposit and how it works. It also describes other types of ACH (Automated Clearing House) transfers and how they work.

Direct Deposit
• What is direct deposit?
• General benefits
• Extra benefits at DCU
• Set-up For Net Pay, Pension, and Other Payments
• Set-up for Social Security and Other Federal Payments
• Allocating Deposits Among DCU Accounts

Other ACH Transfers
• Pre-authorized payments from your DCU accounts
• Pre-authorized deposits to DCU

What is direct deposit?

Direct deposit is an electronic deposit to your account from a third party prearranged by you. It can be one time or recurring. Direct deposit is most commonly used for payroll, Social Security, and pension payments. It also is used for investment dividends and tax refunds.

Direct deposits are made through a system called Automated Clearing House (ACH). Particularly with payrolls, a file is sent by the payer to the receiving institution up to two days in advance of the payment. This tells the receiver the amounts and accounts the deposits will affect. The money is transferred electronically from the payer's institution to the receiving institution. The receiving institution deposits the funds in the accounts of the payees.

Let's do an example. Say you work for Company A and your checking account is at DCU. You get paid every week and have set up direct deposit of your weekly pay from Company A to DCU. Before each payday, Company A calculates your payroll for the week. They have their payroll processor send a computer file to DCU indicating how much money they will be sending to your account on payday. Next, funds are electronically transferred from Company A's account to DCU on your payday. DCU in turn transfers the funds into your account the same day.

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General benefits of direct deposit

The main benefits of direct deposit are...

Speed – The funds are in your account ready to use on payday (or shortly thereafter as some banks).
Convenience – You don't have to visit an ATM or branch to deposit your check. You can spend that time more productively.
Safety – You don't have to be concerned about your check being lost or stolen.
Easier saving – Building your long term savings is easier because it goes into your account before it touches your hands.

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Extra Checking benefits at DCU

We think direct deposit is so important to your financial well-being, we give you extra benefits to encourage you to sign up. With a Checking Plus relationship, you receive...

Early payday – Many employers let us know electronically, up to two days in advance, how much money will go into our members' accounts on payday. At DCU, we credit those funds to your account as soon as we know. You get use of your money up to two days in advance. We know of no bank that offers this benefit. In fact, some banks may delay your direct deposit beyond the payday.
Unlimited free ATM transactions at non-DCU ATMs. – There's no DCU fee to use any non-DCU ATM. However, many institutions may surcharge you at the ATM to use their ATMs. These surcharges average around $1.50, but can go to $5.00 or more in high traffic locations. You can often avoid or reduce surcharges by finding ATMs that don't surcharge, make fewer (but larger) withdrawals, or get cash back from merchants when you make purchases with your card.
Up to $5 per month surcharge reimbursement – At the end of each month, we'll add up the surcharges you paid that month, see if you're eligible for reimbursement, and deposit the full amount or $5.00, whichever is less, in your DCU Checking Account. You can make your reimbursements go farther by finding ATMs with lower surcharges. For example, $5.00 gets you 5 free transactions at a $1.00 surcharge and 10 at 50 cents.

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Direct deposit set-up for net pay, pension, and stock dividends

Whether you want to direct deposit to your DCU Checking or DCU Savings Account, provide your employer or other payment provider with DCU's routing and transit number/ABA# – 211391825.

To deposit funds to your DCU Checking Account, provide your employer or other payment provider with your checking account cross reference number. This is the middle set of numbers (8 digits) on the bottom of your checks. For simplicity and accuracy, you may want to provide them a voided personal check for the account receiving funds.

To deposit funds to your DCU Savings Account, provide your employer or other payment provider with your DCU Member Number.

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Direct deposit set-up for Social Security and Federal checks

DCU can direct these payments to your DCU accounts for you. Just print out our Direct Deposit of Federal Recurring Payments Form (.pdf format) and follow the instructions included with the form.

Our site has information on direct depositing your Federal tax refund check. You'll see your refund faster with direct deposit.

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Allocating funds to DCU Accounts

Once you establish direct deposit with your employer or other payment provider and the funds are being sent to DCU, you can allocate the funds to your various DCU Accounts.

Using PC Branch, you can set up recurring weekly, biweekly, twice monthly, or monthly automatic transfers to your other accounts, to accounts on which you're a joint owner, and to other member accounts you've requested.

You can also fill out an Automatic Transfer Authorization (.pdf format) to have us set up automatic transfers for you.

For further assistance, contact the DCU Information Center at 508.263.6700 or 800.328.8797, weekdays from 8:00 am to 9:00 pm and Saturdays from 9:00 am to 3:00 pm, Eastern time.

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Pre-authorized payments from your DCU accounts

Also known as pre-authorized debits or ACH payments, this is a convenient way to pay recurring bills. Many utilities, insurance companies, and others that bill you regularly offer this option. You send them a voided check and sign an agreement. They charge your checking account each month as if you had written the check your self. It's reliable and saves time.

Each transaction will appear on your monthly statement, or eStatement and in PC Branch account history. Make sure you deduct these payments from the balance in your check register in advance of the actual payment date to avoid overdrafting your account.

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Pre-authorized payments to your DCU accounts

This service (also known as debit transfers or ACH origination) allows you to automatically move money from your accounts at another financial institution to your accounts at DCU. You can make recurring deposits into your DCU checking or savings account or make recurring DCU loan payments. You choose which DCU account the money goes into and which account at your other financial institution the money will be transferred from. DCU does not charge a fee for the service. Your other institution may do so.

If you transfer at least $500 per month into your DCU checking account using this method, you'll qualify for the DCU Direct Deposit Benefits outlined above. You have the option to send money to DCU weekly, biweekly, or monthly. You must submit a completed Authorization and Agreement for Preauthorized Payments form in order for recurring transfers to begin.

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Digital Federal Credit Union
220 Donald Lynch Boulevard
PO Box 9130
Marlborough, MA 01752-9130
508.263.6700 • 800.328.8797

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