Correspondent Services

One of Kentucky Corporate’s main functions as a corporate credit union is the development and implementation of correspondent services. By utilizing economic benefits gained from the pooling of resources, Kentucky Corporate along with the Corporate Network is freeing credit unions from dependence on the commercial banking system.

At Kentucky Corporate, your funds earn hard dollar dividends, not earnings credits, and there is no need for compensating balances. And unlike commercial banks, Kentucky Corporate is committed to making these services profitable for our member credit unions. Through Kentucky Corporate, credit unions have the ability to access the Federal Reserve Bank and other major clearing facilities in a cost efficient way.

The following correspondent services are available at Kentucky Corporate.


The ACH Program gives you faster availability on your credit union’s deposit. It allows your credit union to receive government payments, net payroll, and other electronic funds transactions on behalf of your members. ACH also allows you to receive debit items from your members’ accounts such as recurring insurance payments, utility bills, etc. These transactions are credited to or debited from Kentucky Corporate’s Federal Reserve Account and in turn we credit or debit your Over-Night Account.

Automated Settlement

Kentucky Corporate’s Automated Settlement Program allows credit unions to conveniently settle a variety of clearings: travelers checks, money orders, credit cards, members’ share drafts and more. Your credit union will be able to settle all of your vendor accounts from your Over-Night Account in a safe and efficient manner. By using this electronic means of collecting and disbursing funds on a same-day basis, funds stay in place and earn dividends longer.

Coin and Currency

The Coin & Currency Program was designed to provide credit unions with a safe, efficient, low cost and high quality service. Working in conjunction with the Federal Reserve Bank (FRB), an armored car service and Kentucky Corporate, the Coin & Currency program eliminates any needs to have an account at the FRB as the debits are settled through your corporate account. There are no fees involved with the FRB or the Corporate for this service.

Check Collection

Your credit union can increase its cash flow, increase its earnings, and lower its costs of doing business through better availability with Kentucky Corporate’s Check Collection Program. Check Collection is Kentucky Corporate’s answer to depositing checks with your local bank. This program is designed to move these collected funds into an interest-earning account that pays real dollars - not earnings credits that are lost at the end of each month or quarter and no compensating balances are required. All entries are detailed on your corporate account, and can be obtained through Open Door, Access Fax or with a weekly, biweekly or monthly statement. Kentucky Corporate will provide for you, at your request, an analysis as to whether the program is cost effective for your credit union or not.

Member Share Draft Clearing

Credit unions processing share drafts, through the Federal Reserve Bank or any other financial institution, should look to Kentucky Corporate to provide the daily settlement. By settling share draft clearings with Kentucky Corporate, credit unions would eliminate the need to establish an account with either the Federal Reserve Bank or any other financial institution. As a result, credit union funds would stay in your daily account at Kentucky Corporate, earning hard dollar income. Credit unions using the Federal Reserve Bank to process share drafts may also consider using Kentucky Corporate’s detail posting. Kentucky Corporate’s APEX product may be used to receive the detail for our member credit union’s share draft clearings. Share draft detail will be transmitted electronically to your in-house computer system and may be posted directly to your members’ accounts.

Corporate Share Drafts

Our Corporate Share Drafts was designed to offer members an alternative to bank checking accounts. This program allows members to write their business checks (share withdrawal, loan disbursements and expense checks) directly from the overnight account. Our Corporate Share Draft Program allows you to maximize earnings on your available funds and eliminate costly fees associated with bank checking accounts.

U.S. Savings Bonds

Offering and redeeming U.S. Savings Bonds is an easy and efficient way to attract new money and members to your credit union. Savings Bonds will enable your credit union to offer your members another savings investment vehicle and provide your credit union with additional fee income. Kentucky Corporate will act as your correspondent for the settlement of funds for your savings bond activity. Credit unions interested in becoming an authorized issuing and/or redemption agent for U.S. Savings Bonds should contact their Federal Reserve Branch (Federal Reserve Bank, St. Louis at 1-314-444-4661 and Federal Reserve Bank, Cleveland at 1-800-245-2804).