Banks that offer early direct deposit give customers access to their paycheck or other income up to 2 days early.
When you get paid sooner, you can pay bills sooner and avoid the negative effects of late payments on credit scores.
Banks that offer early direct deposit immediately let you access your funds while the bank processes your payment from your employer or government agency. Instead of holding on to your paycheck until the process is complete, the bank deposits the paycheck before it processes the payment., essentially acting on “good faith” that the employer's payment will clear.
Banks that offer early direct deposit also give you a jump on your savings goals. Get your paycheck early so you can start saving and earning interest in a high-yield savings account.
5 Online Banks That Offer Early Direct Deposit
1. OneUnited Bank
OneUnited Bank is a full-service online bank available in ALL States with branch locations in California, Florida, and Massachusetts. All checking accounts feature early direct deposit. OneUnited also offers a second chance checking account if you have ChexSystems or Early Warning Services records. Deposit cash using MoneyPak that can be purchased at 90,000+ retailers nationwide, including Walmart, 7-Eleven, CVS, Dollar General, Rite Aid, and Walgreens.
To apply go to the blue “Get the Card” button and enter your name and email address then press the orange “apply now” button to complete the application process.
Checking Account Features
- Get paid up to 2 days early with direct deposit.
- No fee with a monthly direct deposit and 10 card purchase transactions*.
- Minimum opening deposit of $50.
- Free Bill Pay, Online & Mobile Banking.
- Obtain Cash, Surcharge Free at Over 30,000 ATMs Nationwide.
2. Radius Bank
Radius Bank is a full-service online bank, with one branch in Boston. Radius Banks features ATM fee reimbursements, high-interest rates, and a rewards checking where you can earn 1% cash back on signature-based purchases in stores and online (at store checkouts, you select “credit” instead of “debit”). If your balance hits $2,500, a 0.15% annual percentage yield kicks in.
Radius Rewards Checking Account Features
- You can receive your paycheck up to two days early, depending on your employer.
- Earn unlimited 1.00% cash back on debit card purchases.
- Unlimited automatic ATM fee rebates.
- Earn up to 0.15% APY.
- No monthly maintenance fee.
- No minimum balance requirement after $100 to open.
3. Chime Spending Account
The Chime Spending Account does not charge monthly or overdraft fees. Chime accounts come with a Visa debit card that has a large free ATM network. This account is very easy to open. It's okay if you have ChexSystems or EWS records. Chime also offers a high-yield savings account that earns a 1.00% Annual Percentage Yield (APY).
Chime Spending Account Features
- Get paid up to two days early with direct deposit ²
- No hidden bank fees.
- No monthly maintenance fees.
- Grow your savings automatically.
- No overdraft or non-sufficient funds fee.
Chime Savings Account Features
- No minimum balance requirement
- No monthly service fee
- Customers can set up an automatic transfer from your checking account to a savings account
- Option to feature to save by rounding up every purchase to the nearest dollar
- Automatically transfer 10% of every paycheck to your savings
4. GTE Financial
GTE Financial has been serving Tampa Bay since 1935. As one of the nation's largest credit unions membership is available online in all states. The easiest way to join is through the free CU Savers organization, a non-profit financial education club. GTE Financial is a full-service credit union offering members access to home, personal, business and auto loans.
GTE Financial Checking Account Features
- Get paid up to 1 day early with direct deposit for $3
- Open the Share Savings Account with as little as $5
- Open a Checking Account with as little as $0
- Online & Mobile Banking Tools.
- Free Bill Pay Service.
- Popmoney to transfer money to friend and family using their email address
To open an account go to: Join GTE: Lets Get Started
Step 1: Enter your name and zip code.
Step 2: Under the tab “What membership option best fits you?” – Select “I am joining CU Savers.” – This will allow you to join the credit union from ANY STATE, free of charge.
Step 3: Provide your contact, identification and employment info. Then, at the bottom of the page, provide referral code E599076ICB
Step 4: Put a check (☑️) inside the “Checking Account box” to open a checking account.
Step 5: Select features you want with your checking account for points. For example, if you choose:
- Early paycheck deposit = 500 points
- Courtesy pay on debit cards = 500 points
- Secure eStatements = 500 points
- Overdraft protection = 100 points
- Use the GTE Mobile App to Deposit a Check = 50 points
- Earn points at retailers = 5 points
Every 2500 points can be redeemed for $25 cash. There are over 20 different offers that will earn you points.
5. CARD.com Prepaid Visa® Card Account – $50 Bonus
Card.com offers prepaid cards with direct deposit plus you can get paid up to 2 days early. Load cash by bringing your card and cash directly to the register at participating locations. This account is good for people with bad credit because there is no credit check or ChexSystems used to approve accounts.
Get a $50 bonus when you sign-up for direct deposit and deposit $200 or more of payroll or federal benefits within 60 days of account opening.
Prepaid Visa® Account Features
- Minimum opening deposit $0.
- Get paid up to 2 days early with direct deposit.
- No monthly fee with direct deposit of $1,000.
- 32,000 Fee-Free MoneyPass® ATMs.
- Cash pre-printed payroll or government checks at participating Walmart locations.
- 90,000 locations to load cash at 7-Eleven, Western Union, Walmart, Walgreens, Dollar General, Rite Aid, Ralphs, Krogers, and many other participating retailers.
- Transfer funds from a virtual wallet such as PayPal or Google Wallet.
- No overdraft or non-sufficient funds fee.
- No Hidden Fees.
How banks can offer your paycheck early
Early direct deposit works much like a regular direct deposit. Your employer submits payroll to the Federal Reserve's automated clearinghouse (ACH) system.
The ACH is a nationwide network through which banks and credit unions send each other electronic credit and debit transfers like direct deposits. Your direct deposit may arrive 2 to 3, or more days before your scheduled payday.
Most banks hold onto your deposit until your employer’s allotted payday. Banks with early direct deposit will release your paycheck as soon as it receives notification from the ACH a deposit has arrived.
This is the reason why you may get paid up to two days earlier than your coworkers at the same company.
For example, let’s suppose that your coworker has a checking account at BofA You, however, have a checking account at Radius Bank which offers early direct deposit. Your payday falls on a Friday. Your employer sends payroll instructions to their bank Monday morning. After your employer’s bank and the ACH finish passing deposit instructions along, your bank and your co-worker's bank both receive the payment files on Wednesday.
Next, both banks start processing the payment instructions. But, your co-worker must wait for his paycheck to arrive at his BofA account, while your bank, Radius, deposits the money into your account so you can access your funds right away on Wednesday instead of getting paid on a Friday – up to two days faster than your coworker.
How to set up early direct deposit?
Setting up early direct deposit involves the same steps as a regular direct deposit. Here are the steps to take:
- Get a direct deposit form from your employer or your bank.
- Fill in your banking information that includes personal and bank details like the bank address, bank routing number, account number, and bank address.
- Choose to deposit 100% or a partial amount of your paycheck into your checking account.
- Attach a voided check or deposit slip, if required.
- Give the form to your employer, and wait for the direct deposit to go into effect. It may take several weeks.
The main difference in early direct deposit vs. direct deposit is that early direct deposit simply allows you to access your paycheck funds faster. But in both cases, it is essential to make sure that your routing and account numbers are accurate to avoid returned funds and fees.
Benefits of direct deposit
The benefits of direct deposit generally outweigh the benefits of receiving a paper check. For example:
- With electronic deposits, you can have your pay immediately available on payday without being present or having to go somewhere to deposit or cash your paycheck.
- Direct deposit can also mean you get your money faster from other payors as well, like the IRS, rather than waiting for a check in the mail. Most Americans recently witnessed getting paid sooner with coronavirus stimulus checks. Everyone with direct deposit received the stimulus money much quicker than those receiving mailed paper checks.
- You can make savings easier by splitting your direct deposit into two or more accounts. If you can put a portion, such as 20%, of your paycheck into a high-yield savings account, to save automatically each month.
Reasons Employees Like Banks That Offer Early Deposits
Most people love getting paid – whether you get paid weekly, bi-monthly, or monthly. In fact, employees are happier on payday than on Christmas according to a 2018 survey commissioned by QuickBooks Payroll where employees said that payday makes them happier than Christmas morning.
Some reasons people are happier on paydays include:
- Get ahead of your debt
- The ability to avoid timing issues and overdrafts with paying bills on payday by receiving your paycheck earlier
- Payday means you can pay bills and have peace of mind
- Dine out with friends or family
- Make a purchase you've been waiting for
- Enjoy a night out
- Attend a sporting event
Stay on top of your bills with banks that offer early direct deposit
Getting paid earlier lets you pay bills on time and do more with your money. You can even boost your emergency savings and get a head start on earning compound interest. Get a handle on your money with funds made available to you right away instead of the bank holding onto your money. Prevent overdraft fees for running out of money!
These five online banks are not the only banks that offer early direct deposit. There are many banks that feature early paycheck options. Some banks may have a small fee involved for the service. Check your local banks and credit unions if you prefer banks that have branch locations.
Direct deposit is already convenient, but early direct deposit ensures you get paid much faster.