How to Get Your Paycheck Early: 20 Banks That Offer Early Direct Deposit
Running out of money is about as much fun as getting a flat tire on a busy freeway.
If you’ve ever wished your bimonthly payday could come a bit earlier because you are in dire need of money, you might be in luck if your financial institution offers early direct deposit.
In this guide, we’ll cover the ins and outs of early direct deposit and highlight some financial institutions that offer this service to customers.
What Is Early Direct Deposit?
Most U.S. workers get their pay deposited directly into their checking accounts via ACH fund transfer weekly, bimonthly, or monthly. This is convenient for employers and employees because it eliminates the need for paper checks and speeds up the remittance process.
Early direct deposit, sometimes called early pay or early payday, allows you to access those funds before they are posted to your account. If you are used to getting paid on the 1st and 15th of every month, you can tap into those funds a few days earlier if your financial institution offers early pay.
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How Does Early Direct Deposit Work?
Direct deposit funds arrive in banking accounts a few days before being posted. Financial institutions hold onto those funds until the actual payment posting date, and then they are made available.
With early direct deposit, though, you can access those funds on the day they are delivered instead of the day they are posted, which is usually two days before the deposit is finalized through the ACH payment system.
What Are the Requirements for Early Direct Deposit?
Requirements for setting up early pay vary by financial institution.
Typically, you’ll have to fill out some forms, or you may be automatically enrolled by your bank or credit union as a perk for having set up direct deposit. The service is usually free as well, but the key is to get paid through direct deposit. The service isn’t available if you get paid by paper check.
Employees whose regular pay shows up on the 1st and 15th of each month can access their funds on the 28th (29th for months with 31 days) and the 13th.
Where Can You Find Early Direct Deposit?
The availability of early direct deposit options spans a wide array of financial institutions, catering to various consumer preferences and needs.
The range of choices is broad, from small regional banks and credit unions to major nationwide banks. The trend goes beyond traditional brick-and-mortar banks to include online banks and payment apps, often competing by offering enhanced benefits and incentives to attract customers. These online platforms frequently tout early direct deposit as one of the perks of establishing an account and setting up direct deposit.
This competitive landscape shows the widespread appeal and growing popularity of early-pay services within the financial industry, giving consumers ample options when seeking faster access to their funds.
Pros & Cons of Early Direct Deposit
Early direct deposit, in which your paycheck or funds are deposited into your account before the scheduled payday, can have advantages and disadvantages. Here’s a breakdown:
Pros
- Immediate Access to Funds: You can access your money sooner, which is vital if you need funds for bills, emergencies, or other financial obligations.
- Improved Cash Flow: You can better manage your cash flow and financial obligations, which can help avoid late payments and associated fees.
- Convenience: Saves you the hassle of depositing a paper check or waiting for it to clear, making getting your money more convenient and efficient.
- Potential to Earn Interest Sooner: If your funds are deposited early, you may earn interest on them sooner, potentially increasing your overall earnings.
- Budgeting Advantage: Allows for better budgeting and planning, as you know what funds you have available before payday.
Cons
- Risk of Overspending: A risk of spending impulsively before bills or other financial obligations are due, potentially leading to financial strain later in the pay period.
- Dependence on Timely Deposits: Early deposit relies on your employer or bank processing the transaction promptly. Delays could disrupt your financial plans.
- Possible Fees: Some banks may charge a fee for early direct deposit services, reducing the financial benefit of accessing funds early.
- Limited Availability: Not all employers or financial institutions offer early direct deposit. Availability depends on your employer’s payroll system and bank policies.
- Adjusting Spending Habits: If you’re accustomed to receiving your paycheck on a specific date, adjusting to early direct deposit may require changes to your budgeting and spending habits.
Ultimately, whether early direct deposit is advantageous depends on your financial situation, spending habits, and the terms offered by your employer and financial institution. It’s essential to weigh the pros and cons before opting for this service.
5 Bank Accounts Offering Early Direct Deposit
Consumers should check with their primary financial institution to determine if their bank or credit union offers early pay.
Below, we’ve highlighted five different types of banks and financial institutions that offer early direct deposit.
Chime
San Francisco-based online financial institution Chime partners with banks to offer banking services to its customers.
Chime is a neobank (a challenger bank), a tech company operating 100% online. Neobanks have limited services compared to brick-and-mortar banks and credit unions. Still, they also can offer certain perks and benefits, such as higher interest rates, due to their significantly reduced overhead.
Chime offers ATM debit cards and a network of over 38,000 ATMs with no fees, no monthly checking account fees, and a Get Paid Early program that allows you to access funds up to two days early.
Wells Fargo
Wells Fargo has been in business since 1852. Its early payday program is tied to direct deposit and has no enrollment or service fee. Customers sign a prefilled direct deposit form, and pay will be posted when the bank receives notice of ACH payment from an employer. However, it may take a few pay cycles before early pay kicks in.
Wells Fargo’s everyday checking account requires a $25 minimum opening balance, and account holders must be 17 or older (18 if opening online). A $10 monthly maintenance fee can be waived with a $500 minimum daily balance or one qualifying direct deposit of $500 or more. Account holders ages 17-24 won’t have to meet any requirements to avoid the monthly maintenance fee.
Capital One
Capital One’s 360 checking account is meant to be an online-only account, though the company does have limited access to branch locations and ATMs in certain locations.
Key benefits of 360 checking include no monthly maintenance or overdraft fees. Capital One also offers free ATM access at more than 70,000 locations. The institution’s early paycheck program allows customers with direct deposit to get paid up to two days early.
SoFi®
SoFi is a financial services and online bank headquartered in San Francisco. SoFi’s online checking and savings account has no monthly maintenance fees and no overdraft fees for qualified customers. Additional benefits include making ATM card purchases with cash back on eligible transactions and online bill pay.
The SoFi checking account includes a savings account and offers customers two-day early access to paychecks with direct deposit.
PayPal
If you regularly use the online payment app PayPal, you can have your pay directly deposited to your PayPal account. You’ll get a PayPal-branded Mastercard to make point-of-sale purchases just like you would with traditional checking accounts. However, frequent PayPal users are likely familiar with using the app to pay for purchases.
Direct deposit funds go straight to your PayPal balance and can be accessed up to two days early.
More Banks with Early Direct Deposit
Several other banks, credit unions, and fintech companies offer early pay via direct deposit. Below is a list of just a few you may want to learn more about.
How to Set Up Early Pay
With financial institutions that offer early pay, customers only need to establish direct deposit from their employer to initiate early pay services. However, you may have to fill out a few additional forms to initiate early payday services.
You’ll have to have an established checking account through a brick-and-mortar financial institution, online bank, or payment service like PayPal. After you link direct deposit to your account, your funds should routinely be available up to two days early.
Many financial institutions advise customers that it could take one to two pay cycles before early pay kicks in.
Early Payday Services and Account Types
Not only paychecks are eligible for early payday services. Below are more of the types of accounts and funds that can be used for early payday.
Checking Accounts
Early payday services are often tied to checking accounts since most customers use these accounts to pay for recurring expenses such as rent, utilities, and other monthly bills. However, depending on the financial institution, your ACH deposits may be directed to savings and money market accounts.
Prepaid Debit Card Providers
Many prepaid debit card providers also allow early payday on qualified direct deposits.
Early Access to Tax Refunds
Some banks, credit unions, and online payment platforms may allow customers to access tax refunds early. Fifth Third Bank, for instance, will enable customers with momentum or express banking accounts to access direct deposit tax refunds up to five days early.
Online Payment Platforms
The One mobile banking app and Venmo, Cash App, and PayPal also provide a five-day advance on tax refunds. You’ll have to provide account and routing information to your tax preparer when a refund is due for your refund to be sent to these online payment platforms.
Frequently Asked Questions
Open a qualified account at a financial institution that offers early payday and set up direct deposit.
ACH funds directly deposited into checking accounts, savings accounts, and other types of eligible accounts or payment platforms often arrive at midnight on the target date, such as the 28th and 13th of each month.
