Plan Sponsors can select either the Checking or Savings account type when entering Banking Information for an annual plan application. Subsidy payment is sent to the Plan Sponsor's bank via Automated Clearing House (ACH) deposit. The RDS Secure Website supports the following ACH payment transactions: “Deposit destined for a Checking Account” and “Deposit destined for a Savings Account.” ACH payment transactions sent to other account types will fail.
The banking information supplied by the Plan Sponsor on the application is sent to the bank as a pre-note verification to confirm that the banking information is valid. The RDS Secure Website supports the following ACH pre-note transactions: “Prenotification for a Checking Account credit” and “Prenotification for a Savings Account credit.” ACH pre-note transactions sent to other account types will fail.
For more information, refer to Application Submission: Banking Information and Manage Banking Information in the RDS User Guide.