Online banks that pay 2 days early immediately let you access your employer paycheck or government benefits sooner than the actual pay date.
Early direct deposit banks give you a jump on paying bills and stashing cash away to benefit from the magic of compound interest.
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Earn $0.50 cash back on debit card purchases
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With direct deposit
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With direct deposit
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Get a loan up to $1,000, no credit check
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Receive 3% APY on checking and 5% APY on emergency fund
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Upgrade is a financial technology company, not a bank. 1
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Current is a financial technology company, not bank. 5
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 Bank of America and you have a checking account at Current 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 Bank of America account, while your bank, Current, 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.
Setting up early direct deposit involves the same steps as a regular direct deposit. Here are the steps to take:
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.
The benefits of direct deposit generally outweigh the benefits of receiving a paper check. For example:
Most people love getting paid – whether you get paid weekly, bi-monthly, or monthly. Some reasons people are happier on paydays include:
Getting paid early 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.
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Chime Disclaimers
1 Upgrade is a financial technology company, not a bank. Checking and savings accounts provided by Cross River Bank, Member FDIC.
2 Early direct deposit requires set up of recurring electronic direct deposit from your employer, payroll, or benefits provider and is limited to direct deposits under $5000. Early access to direct deposit funds depends on the timing in which we receive notice of impending direct deposit, which is generally up to two days before the scheduled deposit date.
3 There are no overdraft fees or annual fees. Optional out-of-network ATM withdrawals are subject to a fee of $2.50, plus any third-party fees. Debit card transactions with merchants outside the U.S. or in a foreign currency are subject to a 3% fee. Outbound domestic wire transfers are subject to a fee of $20 after your first fee-free transfer per calendar month. Please refer to the applicable Cross River Bank Checking Deposit Account Agreement and Upgrade VISA® Debit Card Agreement and Disclosures for more information.
4 Rewards Checking Plus customers who set up monthly direct deposits of $1,000 or more earn 2% cash back on common everyday expenses at convenience stores, drugstores, restaurants and bars – including deliveries – and gas stations, as well as recurring payments on utilities and monthly subscriptions including phone, cable, TV and other streaming services, and 1% cash back on all other debit card purchases. 2% cash back is limited to $500 in rewards per calendar year; after $500, customers earn 1% cash back on all eligible debit card purchases for the remainder of the year. Rewards Checking Plus accounts with less than $1,000 in monthly direct deposits 60 days after account opening will earn 1% cash back on common everyday expenses and 0.50% cash back on all other eligible debit card purchases. Some limitations apply. Please refer to the applicable Upgrade VISA® Debit Card Agreement and Disclosures for more information.
Current Disclaimers
1 Current is a financial technology company, not an FDIC-insured bank. FDIC insurance up to $250,000 only covers the failure of an FDIC-insured bank. FDIC insurance up to $250,000 is available on customer funds through pass-through insurance at Choice Financial Group, Member FDIC, and Cross River Bank, Member FDIC where we have a direct relationship for the placement of deposits and into which customer funds are deposited, but only if certain conditions have been met. There may be a risk that FDIC insurance is not available because conditions have not been satisfied. In such cases, funds may not be fully insured in the event the insured depository institution where the funds have been deposited were to fail.
2 Fee-free Overdraft
Actual overdraft amount may vary and is subject to change at any time, at Current’s sole discretion. In order to qualify and enroll in the Fee-Free Overdraft feature, you must receive $500 or more in Qualifying Deposits into your Current Account over the preceding 30-day period. For more information, please refer to Fee-free Overdraft Terms and Conditions . Individual Current Accounts only.
3 There are no overdraft fees or annual fees. Optional out-of-network ATM withdrawals are subject to a fee of $2.50, plus any third-party fees. Debit card transactions with merchants outside the U.S. or in a foreign currency are subject to a 3% fee. Outbound domestic wire transfers are subject to a fee of $20 after your first fee-free transfer per calendar month. Please refer to the applicable Cross River Bank Checking Deposit Account Agreement and Upgrade VISA® Debit Card Agreement and Disclosures for more information.
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