Spread the Check
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How 10 months of income will cover 12 months of expenses.
Spread-the-Check provides you with the ability to save automatically through payroll deduction with each pay period. Your money will then be available to use for a variety of options during the summer months.
(See Example at the bottom of this page)
Many of our members use this service to manage their cash flow during the summer months because they are paid on a 10-month basis. For these members, Spread-the-Check "spreads" their 26 pay periods by taking the funds deposited to their account through payroll deduction during the 21 pay periods and dividing them equally over five (5) distribution periods during the summer months. A great way to plan and budget money!
What you Need to Know
- Dividends will be calculated on actual daily balance and paid to the account quarterly at the then-current rate. The rate is variable and may change on a quarterly basis.
- Funds will be disbursed five (5) times at two-week intervals during the summer months, beginning in July. At that time, funds will be made available automatically in your checking account (or savings account if you do not have a checking account), every other Friday.
- You may withdraw the entire balance in a lump sum at any time from July 1 to September 15, at no charge.
- Your payroll deductions will continue to be deposited to your Spread-the-Check account with each pay period. This means that the amount of each of your five (5) disbursements during the summer will differ. The initial amount at first disbursement will be the balance in your account divided by five (5). You will then have an additional deposit before the second disbursement, which will increase the balance. The balance at the second disbursement will be divided by four (4) and so on until the last period. Each disbursement amount will be somewhat larger than the one before it.
- Payroll deductions and automatic transfer services are FREE! Using the transfer option provides, at no charge, the convenience of funds availability in your checking account every other week during the summer. You don't even need to come into the credit union! Your money is available at the NYCE, MAC or CIRRUS Automated Teller Machines (ATMs) in the greater Rochester area or around the world!
Service Charges:
Service charges are assessed to cover the cost of additional account servicing for each occurrence if you request the following:
- $5.00 for each unscheduled withdrawal from your Spread-the-Check account during the year. (The $5.00 service fee will be waived if you withdraw the entire balance of your Spread-the-Check account as a lump sum during the summer distribution time frame, July 1 through September 15.)
- $2.00 for each of the five summer disbursements if you elect to have the credit union mail you a check for these disbursements. (You can avoid the $2.00 per check charge by having Spread-the-Check account funds transferred to a checking account or savings account if you do not have a checking account). Your funds will be automatically available to you at the credit union or through any NYCE, MAC or CIRRUS ATM using your ATM or Check Card tied to your checking account.)
Example of Spread the Check:
Teacher Net Pay $1650 per pay period. Put $300 per pay period into Spread the Check.
This leaves you with a net paycheck of $1350 during the school year.
$300 x 21(pay periods) = $6300
$6300= 5 disbursements of $1260 over the Summer.
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