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- Several banks have early direct deposit features, which could get your paycheck into your account up to two days early.
- All banks are technically able process your paycheck early, but institutions make money by holding onto your paycheck longer to earn interest on the funds.
- Early direct deposits give you quicker access to your money and may let you start earning interest sooner, depending on the account.
- There are eight checking accounts with early direct deposit features right now, including accounts from Axos, OneUnited Bank, Wealthfront, and more.
- See Business Insider’s picks for the best checking accounts »
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 eight accounts that offer this service, and an explanation of how they can do it and why it can be smart to take advantage.
1. Axos Bank Essential Checking
- Online-only account
- If you don’t enroll in overdraft protection, purchases that would overdraw your account will be denied
- FDIC insured
Pros
- No monthly service fees
- Receive your paycheck up to 2 days early
- Unlimited out-of-network ATM fee reimbursements
- Multiple overdraft protection options
Cons
- No physical branch locations
- Deposit cash through Green Dot, which may charge fees
2. Chime Spending Account
- 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
- FDIC insured through The Bancorp Bank or Stride Bank, N.A.
Pros
- No minimum opening deposit
- No monthly service fees
- Receive your paycheck up to 2 days early
- 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 $100 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
3. Current Premium Personal Checking Account
- Access to over 55,000 Allpoint ATMs in the US, Puerto Rico, Mexico, Canada, UK, and Australia
- Qualify for Overdrive™ by receiving at least $500 in direct deposits per month
- Funds are FDIC insured by Choice Financial Group
Pros
- No minimum opening deposit
- Get your paycheck up to 2 days early
- No overdraft fees when you overdraw by up to $100 with Overdrive™
- Gas station holds immediately credited to your account
- Earn points when you swipe your card at participating merchants
Cons
- $4.99 monthly service fee
- No way to waive monthly service fee
- $2.50 out-of-network ATM fee
- No overdraft protection for purchases of more than $100
- No way to deposit cash
4. GTE Financial Full Access Checking Account
- 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
- Federally insured by the NCUA
Pros
- No minimum opening deposit
- Get your paycheck up to 1 day early
- Free overdraft protection if you have another GTE Financial account
Cons
- Early direct deposits are $3 per paycheck
- $4.95 monthly service fee
This credit union has four checking accounts, including one for students. GTE Financial Full Access Checking is its most basic checking account, but all four offer early direct deposit.
5.OneUnited Bank BankBlack Checking Account
- Largest Black-owned and FDIC-insured bank in USA
- Branches in CA, FL, and MA; online accounts available nationwide
- Over 30,000 free ATMs nationwide
- Waive $10 monthly service fee by maintaining a $500 balance, OR receiving 1 direct deposit per month AND making 10 debit card transactions per month
Pros
- Receive your paycheck up to 2 days early
- Doesn’t charge a fee at out-of-network ATMs, although the ATM provider may
- Overdraft protection available if you have another OneUnited account
Cons
- $50 minimum opening deposit
- $10 monthly service fee
- $15 fee each time you transfer funds for overdraft protection
6. Radius Bank Rewards Checking Account
- Earn 1% cash back on all purchases, and 1.5% cash back on certain purchases in the health, food, entertainment, and social good categories
- Select “credit” when you swipe your debit card to earn cash back
- Earn 0.10% APY on balances of $2,500 to $99,999, and 0.15% APY on balances of $100,000 and up
Pros
- Earn 1% – 1.5% cash back
- Earn cash back on an unlimited amount of purchases
- Earn interest on your checking balance
- No monthly service fee
- Receive your paycheck 2 days early
- Reimburses out-of-network ATM fees
- Overdraft protection available if you have another Radius account
Cons
- $100 opening deposit
- Minimum balance of $2,500 to earn APY
- $25 overdraft fee
- $5 daily overdraft fee after the 5th consecutive day of a negative balance
7. Varo Bank Account
- Access to 55,000+ Allpoint ATMs in the US, Puerto Rico, Mexico, Canada, UK, and Australia
- Qualify for No Fee Overdraft by swiping your debit card 5 times per month, AND receiving at least $1,000 in direct deposits per month
- Funds are FDIC insured by The Bancorp Bank
Pros
- No minimum opening deposit
- No monthly service fees
- No foreign transaction fees
- Get your paycheck up to 2 days early
- No overdraft fees on overdrafts up to $50
Cons
- No physical branch locations
- No overdraft protection if you overdraw by more than $50
- $2.50 out-of-network ATM fee
8. Wealthfront Cash Account
- FDIC insured for $1 million
- Compounded interest to maximize your earnings
- No monthly maintenance fees
- High-yield checking account with savings features
Pros
- Use as both a savings and checking account
- $1 opening deposit
- No monthly service fees
- FDIC insured for $1 million
- Get paid 2 days early
- Access to a debit card
Cons
- No physical branch locations
- No mobile check deposit
- Earn more with a high-yield savings account
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.
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.
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