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FedNow is a depository system that has been created by the Federal Reserve. The service has been created to help with the convenience and speed of sending and receiving payments. The “Now” in the name is exactly what the program is used to help with – instant action! 


FedNow can be used by any bank or credit union. There is no direct usage for businesses or individuals, but they can use the system through their financial institutions. Any institution of any size will have the opportunity to use this system. FedNow is available to use any day of the week and any time of day. The service is accessible 24/7 all 365 days of the year! The receiver on the other end of the transaction will have access to the funds immediately. The speed of these transactions will also decrease the number of pending statuses. Since pending payments will decrease, consumers will have a more accurate idea of their current balances and statuses.

FedNow is not a form of cryptocurrency. It is simply the way that currency is getting from one place to another, but it is not an alternative form of currency. 


There are many situations in which FedNow will be a very helpful system for users. Some of the foreseen examples for the system include:

  • Consumer/Person to Consumer/Person: payments made between individuals; this could be for things like splitting a bill at a restaurant or sharing rent payments.
  • Consumer to a Business or Government: paying a business for the goods and services that they provide, or paying local, state, or federal government for things like taxes.
  • Business to Consumer: examples of this could be a customer refund, a payroll transaction, or disbursements for insurance.
  • Business to Business or Government: paying another business for goods, services, supplies, or maintenance; paying local, state, or federal government for things like taxes.

Is the FedNow system vulnerable to fraud and hacking?

As with any payment system, there is a potential for fraud. However, our existing fraud detection system will still protect your funds at all times.

As a community bank, we take tremendous pride in being a steward of our customers’ funds and take great care and responsibility to do everything possible to prevent fraud in the first place.


The first launch is taking place in July 2023, but the program as a whole with roll out in stages. Community Savings Bank will begin using this product at the end of this year.

If you are interested in learning more, head over to The Federal Reserve’s FedNow webpage.