When a shareholder’s direct deposit information is outdated, the bank rejects payments transmitted to his or her account. When this occurs, the payments must be reissued in check form; however, this cannot happen until CIRI is notified of credit in the proper amount to the CIRI or CIRI Settlement Trust account. This can delay payment to the shareholder by up to ten business days, during which time no interest is earned.
For direct deposit to be effective, shareholders should advise CIRI in writing of any changes to existing direct deposit account information and instructions. Incorrect account information or instructions may cause your bank to reject direct deposit transmissions made on your behalf.
The most common reasons for direct deposit rejections include:
- Closure of the designated bank account, whether by the shareholder, or the bank.
- Changing banks or bank accounts and not updating direct deposit instructions with CIRI
- Changing your name with CIRI, and not with your bank, or vice versa
To change an existing direct deposit instruction:
- Complete a new Authorization for Direct Deposit Form (be sure to check the box indicating that you are making a change to a previously submitted direct deposit authorization form)
- Attach a preprinted voided check or deposit slip from your checking or savings account from your bank, savings and loan, or credit union to the form
- Return the form to CIRI before the direct deposit deadline for the next distribution
Get the Direct Deposit Form here, or from the Shareholder Relations Department.