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Payroll Deduction
See also:
Definition
A specific dollar amount is withheld from your paycheck for deposit to a savings account,
including Christmas Club and IRA accounts, or to make a loan payment. All payroll deductions will
be posted to the account at the time the funds are received and will begin earning dividends
immediately. Deductions for loan payments will be posted to savings on the day received, earning
dividends until they are transferred to the loan on the day the loan is due. Loan payment funds
will be on-hold in the account until used for the loan payment.
Sign up to have a predetermined amount withheld from your paycheck and credited to your First
Financial account at the time the funds are received. Payroll deduction makes it easy to build
your savings account or make payments on your loan. As an additional benefit, members receive a
1/2% discount on most loan rates when repaid through payroll deduction, direct deposit or automatic
means.
The Benefits of Payroll Deduction
Ease of Savings: What you don't see, you don't spend! Watch how fast your savings
will grow. Convenience: Saves you a trip to the Credit Union to make loan payments, deposits
to savings, or even to make a contribution to your IRA. Never worry about a loan payment being
late. Security: Each member account is insured to $100,000 by the NCUA, an agency of the
U.S. Government. Cost Savings: Members who repay their loans through payroll deduction enjoy a
1/2% reduction in the interest rate.
To Initiate Payroll Deduction:
Simply contact your nearest First Financial office and request a payroll deduction card. If you are a Federal Government employee, you will need to complete a Form 1199A, indicating
the amount you would like to have deducted. Form 1199A is available at any First Financial office Each new payroll deduction card supercedes all previous cards, and should represent the
total monthly deduction requested.
For more information on payroll deduction, please call your favorite branch
or our main office.
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