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You could get your paycheck into your account up to two days early with several banks.
Other 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 earn interest sooner.
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 16 accounts that offer this service, and an explanation of how they can do it and why it can be smart to take advantage.
2. Andrews Federal Credit Union Free Checking Account
Andrews Federal Credit Union Free Checking Account
3. Axos Bank Essential Checking
Axos Bank Essential Checking
4. Capital One 360 Checking®
Capital One 360 Checking®
5. Cheese Account
Cheese Account
6. Chime Spending Account
Chime Spending Account
7. Current Premium Personal Checking Account
Current Premium Personal Checking Account
8. GoBank Checking Account
GoBank Checking Account
9. GTE Financial Full Access Checking Account
GTE Financial Full Access Checking Account
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.
10. Navy Federal Free Active Duty Checking™ Account
Navy Federal Free Active Duty Checking™ Account
11. One Account
One Account
12. OneUnited Bank BankBlack Checking Account
OneUnited Bank BankBlack Checking Account
13. Porte Account
Porte Account
14. Radius Bank Rewards Checking Account
Radius Bank Rewards Checking Account
15. Varo Bank Account
Varo Bank Account
16. Wealthfront Cash Account
Wealthfront Cash Account
How banks process your paycheck early
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.
Laura Grace Tarpley is an editor at Personal Finance Insider, covering mortgages, refinancing, bank accounts, and bank reviews. She is also a Certified Educator in Personal Finance (CEPF). Over her four years of covering personal finance, she has written extensively about ways to save, invest, and navigate loans.
