Bank employee, direct payroll deposit.

[mdennis]

What is the name of your state?What is the name of your state? Alabama

I am an employee of a finacial institution in Alabama. I get paid via direct deposit into my checking account with said financial institution. I want to know if I have the right to request my payroll to be deposited into an account with another financial institution. i was wondering if they can require me to have an account with them?

 

[pattytx]

When you work for a financial institution, direct deposits often are treated as "on us" transactions, which mean your deposit is transferred directly into your account without going through the Automated Clearing House system. At least that's how it was when I worked for Bank of America many years ago.

If your institution offers true Direct Deposit, you should be able to request your net pay be deposited to any financial institution of your choice.

Have you spoken with the Payroll Dept. about this? What do they say?

 

[Veronica1228]

The bank I currently work at requires us to have an account at our bank to get direct deposit. Otherwise, you must get paid by check. Those are the only two options and many of the larger banks do the same.

 

[cbg]

Some states specifically require that the employee be allowed to make the choice of transaction for direct deposit. I don't think Alabama is one of these states (and both Patty and Veronica know a WHOLE lot more about the rules of financial institutions than I do) but I'll see if I can find out anything about Alabama's direct deposit laws.

 

[pattytx]

The only thing I could find about it in my cheat book was that Alabama follows federal Regulation E regarding choice of financial insitutions. Of course, can I find Regulation E when I need it? No.

Veronica?

 

[cbg]

I found the reference I was thinking of and Alabama is NOT one of the states that requires the employee be allowed to choose the bank. I didn't think so but thought it was worth a look. Probably should have done so before I posted. Sorry for the confusion.

 

[Beth3]

Apparently they can require you to have an account with them but once the money is deposted in that account, they have no control over it. I see no reason you can't set up an automatic wire transfer that would redirect the funds to the financial institution of your choice each pay day. Talk to the bank where you'd like to have your account regarding how to set this up.

 

[Veronica1228]

Apparently they can require you to have an account with them but once the money is deposted in that account, they have no control over it. I see no reason you can't set up an automatic wire transfer that would redirect the funds to the financial institution of your choice each pay day. Talk to the bank where you'd like to have your account regarding how to set this up.

Personally, I wouldn't wire the funds because you'll get fee'd to death on both ends. I would just have them issue you a paper check, or write yourself a check to your other account. Much less expensive. My bank currently charges $18 for and outgoing domestic wire, and $11 for an incoming domestic wire. Other banks are just as bad.