Most people in the United States get their paychecks every two weeks. However, it’s fair to wish you could get paid sooner. Life and all of its responsibilities, including bills, take over. It’s fair to wonder how you can get your paycheck sooner.
Can You Get Your Paycheck Sooner?
Certain banks offer a service that allows you to receive your paycheck a day or two sooner than usual. If you’re struggling to pay off your credit card bill or rent or put money down toward a downpayment on a large purchase, you might want to access your money a little earlier. This is possible through an early direct deposit service you can request.
How Does Direct Deposit Work?
Most people receive their paycheck, income tax refund, and other money through direct deposit. It’s a feature that’s set up electronically so that money can go directly into a person’s savings or checking account. This is made possible with the automated clearing house network or ACH, which many consumers and businesses use to make or receive payments. The technology is used to pay bills online and people through direct deposit. ACH and direct deposit help payments get through to their recipients faster.
Early Direct Deposit Explained
You have access to your funds at least a day or two earlier when you get your direct deposit early. Banks and credit unions offer this perk more, which means you can take care of financial emergencies and urgent matters. An early deposit is beneficial if you’re slated to receive your paycheck over the weekend. People who live paycheck to paycheck can take advantage of the feature as it helps pay bills earlier.
Related: How to Get Working Capitals- Small Enterprise and Start-ups?
What if You Need Even Sooner Access to Your Paycheck?
There are other ways to receive your paycheck earlier through direct deposit. Certain companies offer the service for a fee. However, this is not the best way to go because these companies don’t charge interest for the money you need but will charge fees.
This concept is similar to that of a payday loan. You would benefit from avoiding options like this due to the likelihood of getting caught in a vicious cycle. Not only would your paycheck come too soon between paychecks, but the fees for the service can also add up. According to the experts at SoFi, budgeting wisely is a much better option.
Look Into Different Banks That Offer Early Direct Deposit
Many banks offer an earlier direct deposit of your paycheck. If you sign up directly through your employer to get a direct deposit, some banks will ensure that the money is deposited one or two days in advance. It’s essential to check with your bank first to see if this service is offered. If it’s not, you can look into those that do: Andrews Federal Credit Union, Axos Bank, Chime, Capital One, Navy Federal Credit Union, Varo, and Wealthfront all offer direct deposit early.
Getting your paycheck through direct deposit earlier can help when you need money sooner.