Bank accounts with early direct deposit

How to compare banks with early direct deposits

If you’re determined to open an account that offers early direct deposits, consider these four factors when weighing your options.

1. Fees. Most accounts that offer early direct deposit don’t charge a monthly service fee, but exceptions exist. For example, Current requires a monthly fee of $4.99 to use the account.
2. Customer reviews. Read reviews on Trustpilot and the Better Business Bureau’s (BBB’s) website to learn about previous customers’ experiences with banks and their early paydays. For example, while some banks may state they offer early deposits up to two days early, you may find customer reviews that report otherwise.
3. Rewards. Some accounts that offer early direct deposits also let you earn rewards. For example, Radius Bank rewards you with 1% to 1.5% cashback on purchases.
4. Automated savings. Some accounts that provide early paydays, including Chime Savings and One Finance, also offer interest-bearing subaccounts and debit card roundups. One Finance even lets you auto-deposit up to 10% of your paycheck into a subaccount that earns 3.0% APY.

4 benefits of early direct deposits

There are several benefits associated with early direct deposits.

1. Early accessibility. When your paycheck lands in your account early, you have instant access to the funds.
2. More than paychecks. In addition to getting paychecks early, tax refunds and stimulus payments might also arrive ahead of time.
3. Potential to accrue interest. The sooner you have access to your money, the more quickly you can move it into a savings account and earn an APY.
4. No APR. Unlike payday loans and pay advance apps, early direct deposits don’t involve loans of any sort, so there’s never any interest to pay.

2 cons of early direct deposits

Despite the perks of early direct deposits, there are still some potential drawbacks to bear in mind.

1. Unpredictable arrival. The timing of your direct deposit depends on when your employer processes payroll. For instance, if your employer processes payroll on the 12th for deposit on the 15th, you’ll likely get your paycheck on the 13th. But if your company processes payroll on the 14th, you might not get your paycheck early at all. Direct deposits also don’t arrive on weekends or federal holidays.
2. Potential fees. Some accounts that offer early direct deposit — such as Current — require a monthly subscription fee.

How does early direct deposit work?

Normally, banks will hold on to your paycheck to process it before the funds are released to you. But banks, neobanks and fintech companies that include early direct deposit features are willing to deposit your payroll payment into your account before they’ve finished processing the funds from your employer.

Do I need to enroll in early direct deposits?

Most bank accounts that offer early direct deposits don’t require you to enroll in the benefit. It’s automatically included as part of the account. But there are exceptions like prepaid card Wisely, which requires you to opt in to early direct deposit payments even if you already receive your paychecks via direct deposit.

3 alternatives to bank accounts offering early direct deposits

If you like the idea of getting paid early — but you don’t want to switch your bank — here are some other ways to get early access to your paycheck.

1. Prepaid debit cards. Most prepaid cards like Netspend All-Access Account by MetaBank and ACE Flare Account, offer early direct deposits.
2. Cash management accounts. CMAs offer a combination of banking and investing services, and some, such as Wealthfront Cash Account, support early direct deposits.
3. Payday advance apps. Apps such as Brigit, Dave and Earnin can help you get your hands on some cash prior to your payday. But this isn’t a preferred alternative as they generally have monthly fees and strict limitations regarding how much money you can access.

Bottom line

Early direct deposits are growing in popularity, and there’s a good reason why. There are almost no drawbacks to this benefit, which can help you save or spend money sooner than you’d otherwise be able to. But if none of these options support your needs, explore other bank accounts.