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Direct deposit is the fastest way to get your paycheck into your checking account. Several banks make this process even faster by implementing early direct deposit features.
Early direct deposit can effectively get your paycheck into your checking account up to two days early. Below, find 18 accounts that offer this service, and an explanation of how they can do it and why it can be smart to take advantage.
Overdraft protection by linking to savings or using an overdraft line of credit
Cons
$1 out-of-network ATM fee
$32 overdraft fee
Black-owned credit union with branches in DC, MD, NJ, VA, and WA; branches in Belgium, Germany, and the Netherlands
5,000 shared branches in the CO-OP Shared Branch network
30,000 free ATMs in the US in the CO-OP Shared ATM network
Join Andrews FCU by being an employee/member by one of the credit union’s Employer Groups; live, work, study, or worship in DC; are a member of the American Consumer Council; are an immediate family or household member of an Andrews FCU member; are an active military member or veteran, or a family member of someone who served at Joint Base Andrews or Joint Base McGuire-Dix-Lakehurst; are a civilian personnel of Joint Base Andrews or Joint Base McGuire-Dix-Lakehurst, or a family member; are a qualifying military member or civilian personnel of the Department of Defense, or a family member; otherwise qualify based on military affiliation
You must open a Base Share Savings Account to become an Andrews FCU member
New Capital One 360 Checking customers who open a new account from 6/16/2021 to 8/17/2021 using promo code BONUS150 and complete two direct deposits each worth $250 or more within 75 days of account opening, will receive $150
Earn higher interest for 30 days when you refer a friend
Earn cash back
Receive your paycheck up to 2 days early
No overdraft fees
No out-of-network ATM fees
Bilingual customer support (English and Mandarin)
Cons
No option to overdraw funds
Doesn’t reimburse fees charged by out-of-network ATM providers
Interest compounded monthly, not daily
Over 30,000 free ATMs in the MoneyPass network
Digital checking account meant for immigrants and Asian American customers
Earn 0.25% cash back on all purchases and up to 10% cash back at over 10,000 retailers
Choose to donate your $5 sign-up bonus and cash back to the following nonprofits that support Asian Americans: Asian Pacific Fund, Welcome to Chinatown, AAPI Women Lead, and Southwestern Chinese Students and Scholars Association
Earn 3% APY on balances up to $10,000 for 30 days if you refer a friend
Interest compounded monthly
FDIC insured by partner bank, Coastal Community Bank
Rounds debit card purchases up to the nearest dollar and puts spare change in your Chime Savings Account
No overdraft fees for overdrafts up to $200 with SpotMe, if you qualify
No foreign transaction fees
Request checks be sent to recipients online
Cons
$2.50 out-of-network ATM fee
No overdraft protection for overdrafts exceeding $100
Deposit cash at Green Dot locations, which may charge fees
No physical checkbook
Limited to $200/day or $1,000/month transfers from external bank accounts, if initiated through Chime
38,000+ free ATMs nationwide through MoneyPass® and Visa® Plus Alliance
Rounds debit card purchases up to the nearest dollar and moves spare change into your Chime Savings Account
Qualify for SpotMe overdraft protection by receiving $500 in direct deposits per month
Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank or Stride Bank, N.A.; Members FDIC.
Free overdraft protection if you have another GTE Financial account
Cons
Early direct deposits are $3 per paycheck
$4.95 monthly service fee
Credit union, so membership required; several ways to become a member, including joining CU Savers with a one-time $10 fee
23 locations around Tampa, but membership available nationwide
Free access to 30,000 ATMs
Waive the $4.95 monthly service fee by enrolling in eStatements AND making $500 in deposits per month, OR making 15 debit card or credit card transactions per month
Refunds up to $20 per month in out-of-network ATM fees
Receive direct deposits one day before payday
No monthly service fee if you set up military direct deposits
Free personalized checks
3 overdraft protection options: savings transfer, line of credit, or optional overdraft protection service
Cons
Interest compounded monthly, not daily
Free Active Duty Checking is only for active military, retired military, or reservists
Available to active military, retired military, or reservists
Join Navy Federal Credit Union as an active military member, military veteran, Department of Defense employee/retiree, or family member of any of the aforementioned groups
247 branches worldwide, including on select military bases
1% on your Save Pocket; 3% on your Auto-Save Pocket
Pros
No minimum opening deposit
No monthly service fees
Earn a high APY on your savings pocket and automatic savings pocket
Use your debit card as overdraft protection
No fee for using an out-of-network ATM
Receive paychecks sooner with early direct deposits
Cons
Only earn interest on up to a certain balance
Doesn’t reimburse any fees charged by out-of-network ATM providers
You’ll pay interest on overdraft line of credit if you don’t repay the cash in a month
Free access to 55,000 Allpoint ATMs in the US
The One Account acts as a hybrid checking/savings account
Set up a Savings Pocket and earn 1% APY on balances up to $5,000
Round up debit card purchases to the nearest dollar, and the money goes into Auto-Save Pocket; earn 3% APY on your Auto-Save Pocket
If you overdraft your account, the debit card acts as a line of credit
Earn more rewards by setting up direct deposits: Earn interest on your Save Pocket balance up to $25,000; increase your line of credit; put 10% (up to $1,000 per month) of paychecks into Auto-Save where it earns 3% APY
Deposits are FDIC insured through Coastal Community Bank
Automatically move extra money into investments with Autopilot
Save for separate goals in one account
Cons
No physical branch locations
To deposit cash, pay a fee at a Green Dot location
$2.50 out-of-network ATM fee
FDIC insured for $1 million
19,000 free ATMs
Autopilot feature lets you set maximum account balance, and automatically transfers money into investments if you exceed maximum balance by more than $100
How is possible for banks to get your paycheck into your account early?
“From a technical standpoint, any bank is capable of getting you your paycheck up to two days early … but they choose not to because they make money holding your paycheck hostage for a day or two,” Kate Wauck, Vice President of Communications for Wealthfront, told Business Insider.
“It’s referred to as ‘float’ which is basically banks double-counting deposits for a short period of time before they clear the transaction so they can earn interest on both of the amounts,” she continued. “A bank credits a customer’s account as soon as a check is deposited. Until the check clears the account it’s drawn on, the amount it’s written for ‘exists’ in two different places, appearing in the accounts of both the recipient’s and payer’s banks. So a bank will earn interest on the amount twice. So as you can see there isn’t huge incentive for banks to speed up the process because of float and their ability to double interest payments.”
Some banks choose not to hold onto your direct deposits, though, which can provide incentive for you to bank with the institution.
Benefits of early direct deposits
Early direct deposits have two main perks:
Faster access to your money. This perk especially useful if you’re living paycheck to paycheck or have a big bill coming up. At the very least, having your money sooner is convenient.
Start earning interest sooner. Some banks pay interest on their checking accounts, or you can transfer money from checking to a savings account that earns interest. Thanks to compound interest, every day your money accumulates interest helps you earn more.
