What is Direct Deposit?
Direct Deposit means your paycheck will go directly to your bank on payday without you having to make a trip to the bank to deposit your check. Direct Deposit is a major ACH (Automated Clearing House) application used to automatically deposit recurring payments into an individual’s account. The ACH is a centralized clearing facility operated by the Federal Reserve. The ACH receives debits and credits from sending banks and distributes them to other Automated Clearing Houses for distribution to receiving financial institutions. The receiving financial institutions receive paperless entries from the local ACH and post them to the accounts of its depositors .Instead of printing checks, payroll produces a computer tape containing a record for each participating employee. This information is then processed through the ACH system and individual payroll entries are routed to the appropriate receiving financial institutions for posting to the employee’s accounts.
Direct Deposit is a service that deposits any regularly scheduled payment, such as your paycheck, into your HIFS checking, savings or insured money market account. Because your employer transfers your paycheck directly to your HIFS account, you don’t have to worry about lost or stolen checks. Better yet, as soon as your paycheck is deposited, it’s available to you as cash.
