The Federal Reserve Bank of San Francisco
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News Release

Contacts: 

 Andrew Osenar - (503) 221-6011
  Carol Eckert - (415) 977-3853

Federal Reserve Bank of San Francisco Joins Organizations Throughout the Country in Urging Greater Use of Direct Deposit

For Immediate Release

First annual Direct Deposit Week is planned for October 12-16

SAN FRANCISCO, October 8, 1998--The Federal Reserve Bank of San Francisco is joining an industry coalition including the U.S. Treasury and Automated Clearing House (ACH) associations nationwide in urging employers to offer--and employees to use--Direct Deposit for all kinds of payments, such as salary, travel reimbursements and bonus payments.

"We are very pleased to take part in the first ever national Direct Deposit Week promotion, " said John F. Moore, first vice president and chief operating officer of the Federal Reserve Bank of San Francisco. "Direct Deposit is safe, convenient, and efficient for consumers, corporations, and government alike. This initiative is a great fit with the Federal Reserve System's focus on promoting efficiency through the use of electronic payments."

Currently, only 32 percent of U.S. companies offer Direct Deposit to their employees. The coalition's first goal is to encourage more employers to offer Direct Deposit.

"Although many large and medium-sized companies offer Direct Deposit, there is definitely room to grow," said Moore. "We want to ensure that organizations of all sizes realize that Direct Deposit can save them money and provide a tremendous benefit to their employees."

A 1998 Federal Reserve study showed that 97 percent of employees who use Direct Deposit are very satisfied with it. Most people understand the convenience of Direct Deposit--an employee can spend up to three workdays each year standing in line to deposit checks. But Direct Deposit also is extremely safe and far more confidential than using a check. A check passes through many more hands than an electronic transfer.

Employers who want more information about Direct Deposit should contact Archie Emerson at (415) 974-2350 or Andrew Osenar at (503) 221-6011. Employees can contact their payroll officer or human resources manager to request Direct Deposit.

For additional information on the benefits of Direct Deposit, contact your regional ACH association or visit the Direct Deposit Coalition web site at www.directdeposit.org. The site is scheduled to debut in October.