Electronic Funds Transfer--Its Potential for Improving Cash Management in Government

Electronic funds transfer (EFT) technology is being increasingly used in government and industry to replace checks for sending and receiving money. The use of EFT in the Federal Government is expected to increase the government's opportunities for realizing interest savings. Funds which flow faster into the Treasury's interest-earning tax and loan accounts at banks and other financial depositories begin earning interest sooner. In addition, funds which flow faster into the Treasury's accounts at the Federal Reserve can also begin earning income sooner.