What’s better than payday? When payday comes a few days early!
It’d be great if we could all get paid more often, but there’s something that’s almost as good — getting your paycheck a few days earlier than planned. A few banks offer something called early direct deposit. If your payroll is direct deposited, and you have one of these bank accounts, you might get your paycheck up to two days earlier than expected.
7 banks that let you get paid early
There are a lot of banks with early direct deposit. Remember that if you want to get “paid early” with direct deposit, you have to set up direct deposit with an account that offers early arrival.
Here are just a few top banks that offer early paycheck arrival, and the details:
- Ally Bank: Offers early direct deposit with the Ally Spending Account.
- Chase Bank: Set up direct deposit with the Chase Secure Checking account.
- Chime: Early direct deposit with the Chime Checking Account.
- Discover Bank: Offers early direct deposit with checking, savings, and money market accounts.
- Huntington Bank: Early direct deposit with its checking accounts.
- SoFi: Offers up to two days early paycheck arrival, with $1,000 or more in direct deposits every 30 days.
- Wells Fargo: Offers early direct deposit with Wells Fargo checking and savings accounts.
How does early paycheck arrival work?
Usually, paycheck delivery from direct deposit can take one to three days to clear, and the bank receives the paycheck from your employer around two to three days before your actual payday.
Early direct deposit lets you get your paycheck faster.
Instead of waiting for the money to fully clear, your bank releases the funds as soon as it gets the deposit info from your employer, allowing you to get your paycheck earlier than your scheduled payday.
In most cases, you don’t have to sign up for an early direct deposit. If your bank supports early direct deposit and you’ve set up direct deposit, the perk usually kicks in automatically. There are also no fees for this feature or regular direct deposit.
Pros and cons of early pay
There aren’t too many cons of early paycheck arrival, but keep these points in mind.
Pros:
- No fees. Most banks that offer early deposit include it as a free feature. It’s not a line of credit, so there’s no credit check and no approval process to go through.
- Easy to set up. You usually don’t have to do anything beyond setting up direct deposit. If your bank supports early pay, it’ll often activate automatically when your paycheck hits.
- Faster access to your money. Getting paid up to two days earlier could make a real difference when you’re living paycheck to paycheck or covering unexpected expenses.
- Could help manage cash flow. Early pay could give you a head start on bills, groceries or loan payments. This can help you avoid fees or overdraft charges, especially if you’re tight on timing each month.
- May reduce reliance on advances. If you’ve ever had to take a payday loan or paycheck advance to stay afloat between checks, the new schedule might help you get out of that cycle.
Cons
- Timing may vary. There’s no guarantee that your bank can deliver your paycheck early every single time, and most banks say “up to two days,” which may mean you’ll get paid one day early sometimes. Timing can depend on your employer, the bank and the day of the week.
- Delays may still happen. If your payday falls on a weekend or holiday, early direct deposit may still be delayed until the next business day, just like regular direct deposit.
- No extra money. Early payday does not mean you’re getting extra money or a cash advance — it just means your regular paycheck may clear early.
Alternatives to early direct deposit
If early direct deposit isn’t an option with your bank or employer, consider these alternative options.
- Earned wage access apps. Sometimes called “on demand” apps, earned wage access apps can offer cash advances based on your wages, such as DailyPay or EarnIn.
- Overdraft protection options. Some banks and fintechs let you overdraft up to a certain amount, and the amount is repaid with your next deposit. For example, Chime SpotMe lets eligible customers overdraft up to $200.
- Personal loans. There are plenty of lending options available if you’re short on cash, such as personal loans, credit cards or retail lenders like Affirm.
