Electronic Transfers Versus Electronic Bill Pay

Laurie Frederiksen on

There is consistently confusion between these two things.

All of the brokerages I've dealt with in clubs allow you to use Electronic Bill pay from from a members bank account to send a check to your club brokerage account.

To set this up, ask your broker what their requirements are for sending in checks. Typically, they have you make the check out to the name of the broker and have you put the club account number in the memo field. When the broker gets it, they deposit it in that account.

Whether you write a check and send it to them or have the bank send a check using their Electronic bill pay service, the broker will take it. The advantage of setting it up with electronic bill pay is that you can tell the bank to send a check every month for a given amount. You can even tell them what day you'd like it to arrive at the broker.

This is all different from asking to do a direct electronic transfer. That does usually require both accounts to be titled the same way.

So you can have members "electronically" make deposits. Just make sure you are asking the right questions when you ask about it.

Laurie Frederiksen
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