Checked Savings Instead of Checking.. Matter?

[Chowdahead]

Had a rollover and the client had a new bank account. I entered the new account number in for the direct deposit, same routing as last year. But I forgot to change Savings to Checking.

Does it matter, as long as the routing and account number are accurate? I seem to recall in the past that it didn't really matter as long as the account info was accurate, but I wanted to be sure.

[Jack from Ohio]

How it is treated will be totally up to the finacial institution involved. Each one has their own rules about what they will and will not accept.

If they want to be "customer service friendly", they will accept it. If not, it will be rejected, go back to the IRS, and in about 2 -3 more weeks, a paper check will be sent.

[Pacun]

Most of the banks just care about the routing number and account number. They don't even care if the name doesn't match. I doubt any bank will reject because of that check mark.

[Jack from Ohio]

The firm I work for had a bank refuse deposit from a joint return into an account that had only the husband's name on it.

Someone at the bank has to approve every ACH transaction. How the bank decides to handle them is up to the bank.

Have the client call his bank, talk to the person who handles the ACH transactions, and see what he can find out. My experience with several banks in the past 5 years has shown me that most do not care about proper customer service, and have forgotten who the actual customer is.

I deal with a local bank that only has 5 branches, all in my county. Even there, the "attitude" still shows itself.

[frazzled]

I made the same mistake on my cousin's tax return two years ago. I was sick with worry for two weeks waiting for the hoped-for deposit (although my cousin wasn't worried at all). He called me the morning it was deposited and said I could get some sleep!

[Chowdahead]

OK Thanks. I'm guessing it will go through fine.

Regarding the name issue. I have told my clients that I cannot guarantee that their refund will be accepted into someone else's account. Sometimes they want to deposit it into a parent's or sibling's account. I tell them it depends on the bank policy. In the past, Bank of America has allowed it, but they could change their policy at any time.