Banks With Early Direct Deposit

Early direct deposit is a banking feature that lets you receive your paycheck up to two days earlier than a regularly scheduled payday. Not all banks offer this service, and those that do may limit which accounts are eligible.

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Unlike many banking features, early direct deposit is relatively new; its adoption in the banking industry has grown in the past few years. Banking financial tech firms such as Chime®, Venmo and Cash App were early adopters and became more popular during the onset of the COVID-19 pandemic because of early direct deposit. Since 2021, more traditional banks and credit unions have added the feature.

How early direct deposit works

Early direct deposit is generally a free and automatic feature at a bank. Automatic, in this case, means there’s no sign-up required if you’re eligible. And early means one to two days ahead of payday, so if you normally get a paycheck on Friday, it would arrive on Wednesday. (Learn more about how direct deposit works.)

However, at institutions that offer early direct deposit, a few things need to happen for you to benefit:

• You already receive a paycheck or government benefit payment through direct deposit, an electronic alternative to paper checks or cash. (If you don’t and you're able to, learn how to set up direct deposits.)

• Your bank has to receive direct deposit details from your employer or a government agency ahead of payday. Employers generally submit payroll information to banks up to two days before funds arrive. Since banks know the money is on its way, they can push income to your account early.

What types of institutions offer early direct deposit?

You can find big and small traditional banks, online banks, credit unions and neobanks that all offer early direct deposits. Here’s a breakdown of these types:

• Banks are for-profit institutions whose accounts are federally insured through the Federal Deposit Insurance Corp.

• Online banks are a type of bank that primarily operates without physical branches.

• Credit unions are the not-for-profit equivalent of banks with similar accounts that are federally insured through the National Credit Union Administration, instead of the FDIC.

• Neobanks are banking financial tech firms that partner with banks in order to offer federally insured accounts. Neobanks are not banks themselves. Several popular fintech firms such as PayPal (with its app Venmo) and Block’s Cash App may be considered neobanks given their bank partnerships and accounts, though these platforms are more commonly known as digital wallets or peer-to-peer transfer apps.

Financial institutions with early direct deposit

Here’s a list of some banks, credit unions and neobanks that offer direct deposits early.

What are the benefits of early direct deposit?

Having your income available in your bank account early might help you avoid paying bills late, so you can potentially avoid overdraft or late fees. An overdraft fee, which can occur when a transaction puts your checking account balance below zero, is one of the most expensive fees a bank or credit union can charge.

Another benefit to an early paycheck might be getting one to two extra days to earn interest on your funds, especially if you transfer a portion of your paycheck to a high-yield savings account regularly.

Are there any issues with early direct deposit?