Do you have a direct deposit or an automatic payment associated with one of your accounts? If so, please continue reading to learn some important information regarding the account information you provide to third parties and the accounts you should use for automated transactions.
Automated Clearing House (ACH) is an electronic network for financial transactions in the United States. The large volume of daily credit and debit transactions processed by ACH causes it to be account-number driven. You must provide both an accurate and complete account number for automated activity to guarantee transactional items will post the way they are intended. The 6-digit base member number only correlates to your savings account. All nine (9) digits of your account number must be provided to third parties to ensure funds are deposited to or withdrawn from your checking account. If you fill out a form through your employer and check a box for your checking account to receive automated transactions, you still need to provide the entire 9-digit checking account number.
A checking account is a “demand” account designed to allow members to have immediate access to funds and a savings account is an account strictly intended for members to save funds. Federal law (Regulation D) limits the accessibility of funds because of these account differences. The most notable limitation is the maximum of six (6) preauthorized withdrawals and transfers per month. These withdrawals and transfers include those made online, by telephone, by ACH, or by automatic (overdraft) transfer.
DoverPhila Federal Credit Union does not offer an overdraft account for a savings account because it is not a demand account, but we do offer overdraft account protection for a checking account. If you use your savings account as a demand account, it can result in an overdrawn savings account, NSF fees, and returned/unpaid items.
It is always good to educate yourself with what is going on in the banking world especially when it comes to financial matters regarding your accounts. DoverPhila wants you to be able to access your accounts and funds without issues. If you have questions regarding your account, please contact a DoverPhila member service representative by calling 330-364-8874.