Chapter 41 of the General Laws is hereby amended by inserting after section 41C the following section:-

Section 41D. The treasurer of any city, town or district which accepts this section shall pay salaries, wages, or other compensation to any person in the service of such city, town or district by means of deposits to a deposit account or accounts of such person in any 1 or more savings or cooperative banks, trust companies, or credit unions incorporated in or chartered by the commonwealth; in any 1 or more national banking associations, federal savings or loan associations or federal credit unions located in the commonwealth; or any 1 or more savings or loan associations under the supervision of the commissioner of banks; provided, however, that if such deposits are made initially to accounts established for such persons in any 1 such bank, trust company, credit union, or association, the depository shall have agreed with the treasurer on terms satisfactory to the treasurer for the immediate direct transfer of such deposit to any other such bank, trust company, credit union or association designated by each such person.