You Can Get Your Paycheck 2 Days Sooner

Some banks allow early direct deposit so that your money reaches your account more quickly.

If you worry about having enough money to pay your bills on time because you live paycheck to paycheck, one option that many banks now provide may be able to make your life a bit easier.

If your employer employs direct deposit, your paycheck may be accessible with some banks up to two days before your regular payday. Especially for expenses that are due around the time you get paid, having early access to your paycheck may make it easier for you to pay your bills on time and save late fines.

To take advantage of early direct deposit, below is a thorough description of how this service operates and various banks that offer it.

How Does Direct Deposit Work?

The electronic equivalent of a paper check, direct deposit is frequently used by employers and enterprises. The automated clearing house network, or ACH, is used by millions of customers and businesses to make payments, such as online payments for auto loans or credit card bills.

Businesses use ACH to make direct deposits to pay vendors and employees' salaries. Only the routing and account numbers for the employee's checking or savings accounts are required. Usually, it takes a while—up to two days—before the money reaches your account.

People prefer ACH to paper checks since payments are timely and there are no delays or lost checks to deal with. According to Brian Walsh, senior manager of financial planning at SoFi and a certified financial planner, direct deposit has increasingly replaced checks as the preferred method of paying employees because it is quicker, more convenient, and frequently opens the door to additional benefits from your bank.

Since direct deposits allow for quicker payment processing and prompt access to deposited funds, both recipients and businesses benefit from using them.

What Happens With Early Direct Deposit?

More banks and credit unions are now providing early direct deposit, a relatively new service that allows clients to get their paychecks more quickly and start earning interest on their money earlier. According to Scott Lieberman, the creator of TouchdownMoney.com, "When your employer processes payroll, they submit the direct deposits to your bank, and as soon as your bank gets the funds, you will have access to the money." "The bank doesn't wait the customary amount of time for the funds to clear."

Customers often have two days' earlier access to their money, which is advantageous if your payday occurs on the weekend. If you get paid twice a month, say on the 15th and the 30th, you can now start making interest payments and paying bills by the 13th and the 28th of each month.

If your cash flow is limited, getting paid early may enable you to purchase necessities or prevent late payment costs and penalties, according to Walsh. "Getting paid early could mean collecting interest for a few extra days if your cash flow is not tight."

What if You Need Access to Paycheck Funds More Than 2 Days Early?

Many businesses provide pricey paycheck advance services. These businesses let you receive a portion of your next income earlier, but the high costs offset this advantage.

Here's an illustration of how it functions: A week before you get paid, you get the $300 you need to cover an unforeseen expense. The $300 is taken out of your paycheck and given to the paycheck advance firm once you are paid. You pay a flat charge of $45 for the $300 loan in place of interest. This translates to a 460% annual percentage rate. While maximum loan amounts and fees differ from state to state, all alternatives for salary advances are pricey.

Financial experts advise against doing this because it's simple to fall into a cycle of inconsistent income. Reevaluate your spending plan and figure out how to set aside a little sum of money for an unexpected need like a car repair.

Banks That Offer Early Direct Deposit

Many banks allow you to direct deposit funds into your checking account early. Even if you work part-time, if you opted for direct deposit from your company, you should get paid up to two days earlier. For further information, especially if you recently signed up for direct deposit, check with your bank. If your bank provides this service, see if it is included in the list above.

Ally Bank

If you regularly receive direct deposit payments to your checking account, Ally will automatically offer early direct deposit. Each paycheck must be $10,000 or less, and the bank permits up to eight early direct payments per account, every statement cycle. There are no monthly service fees or minimum initial deposits. Up to two days in advance, your paycheck will be available.

Axos Bank

Customers of Essential Checking who have direct deposits automatically receive Direct Deposit Express. There is no monthly service charge, no minimum opening deposit, and the service is free. Up to two days in advance, your paycheck will be available.

Chime

When you set up direct deposit and get a qualifying payment, you can receive your paycheck up to two days earlier. Both minimum balance fees and monthly service costs are absent.

Capital One

With the 360 checking account, setting up direct deposit enables you to receive payments up to two days earlier. There are no monthly service fees or minimum initial deposits.

Dora Financial

On its fee-free bank account, Dora offers early direct deposit up to two days in advance. There is no necessary minimum balance.

Fifth Third Bank

Customers get access to Early Pay when they open a Fifth Third Momentum checking account. Both enrollment and payment are not necessary. Up to two days in advance, your paycheck will be available.

Huntington Bank

Customers of Huntington Bank who have a checking account with direct deposit can get Early Pay of up to two days. The service runs on autopilot. Depending on the checking account you select, there may be fees and minimum balance requirements.

Regions Bank

When you receive qualifying direct deposits to any Regions deposit account or prepaid Regions Now card, Easy Pay of up to two days is an automated feature. Depending on the account you choose, there may be fees and minimum balance requirements.

Simmons Bank

Early Payday of up to two days is a standard feature of Simmons Bank's Coin checking account. There are no monthly service fees or minimum initial deposits.

SoFi

Set up direct deposit to get payments up to two days early into your checking or savings account. Both minimum balance fees and monthly maintenance fees are absent.

Varo

It is possible to receive your paycheck and tax refund up to two days earlier by setting up early direct deposit to your Varo Bank Account. There are no monthly service fees or minimum initial deposits.

Wealthfront

On the Wealthfront Individual Cash account, early direct deposits are permitted up to two days in advance. There is no monthly service charge and a $1 starting deposit requirement.

Wells Fargo

Your qualified direct deposits can be accessed up to two days earlier with Wells Fargo's Early Pay Day service. There is no registration necessary. Each checking account option has a $25 initial deposit, and monthly service fees vary.