How To Get Your Paycheck Early

Written by Banks Editorial Team
4 min. read
Written by Banks Editorial Team
4 min. read

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A reliable paycheck makes it easier to cover expenses and plan your budget. Many companies distribute paychecks on a predictable day of the week. So you’ll know when your paycheck arrives, but it may not come soon enough. Some consumers have urgent expenses that need immediate attention, and the paycheck is too far into the future to cover them on time. 

During scenarios like these, it would help if you could get your paycheck sooner. Unfortunately, not everyone likes the idea of approaching their boss and asking for an earlier payday, especially if it becomes common. Current can help you get a paycheck a few days early. We’ll share how to get an early payday and practical ways to use this feature. 

Mobile Banking Done Better

Did You Know That You Can Get Your Paycheck Early?

Most workers wait for their bosses to provide their paychecks. Many companies use schedules to determine when to pay employees. However, you don’t have to wait for your employer to pay you. A mobile banking app like Current can provide early payments. You won’t have to wait for payday to use your funds.

The Direct Deposit Process

The direct deposit process lets you receive your paycheck up to two days early. Employers submit payroll details before providing paychecks. The Federal Reserve receives this information and processes the payment within two days. Usually, the process ends at this stage. You wait for payday and then claim your check. However, the Federal Reserve can share this information with Current. You’ll then receive credits equal to your paycheck instead of waiting for payday. You can’t cash your check a second time, but you get much quicker access to the funds.

Paper Checks vs. Direct Deposit

Paper checks create more hassles for employers and employees. Paper checks can get lost, damaged, or stolen, which can frustrate both parties. You’ll also have to drive to the bank to deposit your check. Current lets you take a screenshot of your check and deposit it from anywhere. Mobile banking apps without this option require a trip to the bank. 

Direct deposits follow a more streamlined process. Employers use ACH transfers to deliver the money. These electronic transfers may take two days to arrive in your bank account. ACH transfers are common today. Consumers use ACH transfers to pay credit card debt, loans, and other expenses. The two-day delay can frustrate some employees, but financial institutions that offer early payments address this problem.

How Early Direct Deposit Shortens the Process

The early direct deposit process provides you with funds before receiving the payout. Let’s say you have a $2,000 paycheck coming in two days. Current will add $2,000 to your account before the ACH transfer gets finalized. You can spend the $2,000 in any way you desire. When the ACH transfer goes through, Current uses those proceeds to cover the cost of giving you an earlier payday. You’ll get a quicker payday without additional fees or interest. 

The Benefits of Early Direct Deposits

Early direct deposits give you access to the same funds in a shorter timeframe. In addition, consumers with early deposits enabled for their bank accounts get to capitalize on these benefits.

Faster Access to Cash

Early direct deposits provide faster access to cash. As a result, you can pay emergency expenses sooner and cover credit card debt before the due date. Some people have urgent financial needs, and receiving your funds two days early can make a notable difference.

More Secure and Convenient Than Paper Checks

Paper checks have several flaws. A co-worker can steal a check, and your boss can lose your check or forget to write it. Paper checks create more room for human error. Direct deposits offer a more secure and convenient solution for workers and employers. It’s easier to send checks to each person, and you won’t have to worry about losing checks or someone stealing them. 

Mobile Banking Done Better

Earn Interest Sooner

You start receiving interest on your cash the moment it lands in your bank account. Receiving your money early lets interest accumulate sooner. Most people overlook this advantage since financial institutions have low-interest rates for savings accounts. Current account holders pay more attention to interest payments. A Current savings account nets you 4% APY on your money, far more than the interest you’ll get at a conventional bank’s savings account. Since direct deposits provide earlier access to cash, interest payments compound quicker. 

Get Your Paycheck Early

You don’t have to wait until payday to use your funds. However, receiving an early paycheck has several advantages that revolve around covering expenses and earning a higher return on your money.

Some Drawbacks of Early Direct Deposit

Why would someone wait two days to get the money they could just as easily get right away? Of course, early direct deposits aren’t perfect, and they have some drawbacks to consider before enabling them for your bank account.

May Encourage Overspending

Receiving your paycheck early lets you use the money sooner. While this structure helps you cover emergency expenses, it can also lead to bad spending habits. Spending money as quickly as it arrives makes it more difficult to accumulate wealth and transition to a smooth retirement. Current’s spending insights can help you avoid overspending. You can see where you spend most of your money and receive personalized tips that can keep your expenses down. Lowering your costs will help you get more out of direct deposits and save your money.

Some Banks May Charge Fees

Some mobile banking apps like Current do not charge fees for direct deposits. However, other financial institutions may impose a fee for an early payday. You can wait two extra days to avoid the fee. Some people have urgent financial needs and may see the fee as a necessary sacrifice. You can switch to a better bank that doesn’t charge fees for early paydays. You don’t have to close a bank account if the financial institution charges this fee, but you can direct payments to a zero-fee account.

Not All Checking Accounts Come with Early Direct Deposit

While it’s a great feature, not every financial institution is up to par with user benefits. Some companies may not offer early direct deposits. You will have to create a bank account with another company that provides this feature.

Sign Up with an Account with an Early Direct Deposit to Get Your Paycheck Sooner

Early direct deposit helps you get your paycheck sooner. You won’t have to wait up to two days for the payout to process. Receiving your paycheck creates more possibilities. Instead of waiting for the next payout, you can make debt payments sooner and address emergency expenses. Not every bank provides early direct deposit. If your bank doesn’t offer this feature, you should create a Current bank account. 

Current lets you receive your paycheck early instead of waiting for the ACH transfer to process. You’ll also get wealth-building features such as spending insights, 4% APY on your savings accounts, and overdraft protection up to $200. You can learn more about Current and create an account by visiting their website or downloading Current’s mobile app.

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