In the past, Direct deposit was an additional perk given by banks. However, at the moment, it’s now a default option for most users. What time does direct deposit hit your bank? Come with me, let’s talk about the direct deposit times for major banks in the U.S.
What Is Direct Deposit?
Direct deposit permits the payer to initiate an electronic payment that’s readily deposited into the receiver’s bank account. In this way, the payee can withdraw the money immediately.
Instead of waiting for paper check deposits that take two to five days for clearance, everything is done immediately as the name implies. The payee gets the money within a few minutes.
How to set up direct deposit
It’s simple. Your employer or government will give you a form. Fill the form with your personal details including your name, address, account number, and your bank’s name and routing number.
What Time Does Direct Deposit Hit?
Direct deposit means instant payment. So, you will get paid on the same day the payer sends the money. Please note that the time frame for getting the money depends highly on who sends the money and his or her location. For instance, if your employer pays for direct deposit today, you will get the money even before you resume work tomorrow.
Keep In Mind
Furthermore, direct deposits from the government, like social security benefits, arrive on the second, third, or fourth Wednesday of the month. However, if Wednesday is a national holiday, it hits the last business day before the holiday.
On the other hand, other sources of direct deposit usually enter your bank account within one business day.
This is vital, just know that direct deposits are not generally held by the bank.
Benefits of Direct Deposits
Below are the benefits:
Banks permit people to split their direct deposit, feel free to transfer some to a checking account and leave the rest in a savings account. This is a great way to save without stress. You can try it.
This is the fastest way to get your money. The bank does not hold it. You can even withdraw the same day. It’s really fast.
Now, you don’t have the tension of losing your paycheck in paper form. Interestingly, direct deposits are safe and insured up to $250,000 by the FDIC.
This is an electronic transfer, no need to travel to the bank to get the check cashed. You can withdraw from the nearest ATM to you the moment you get an alert.
Direct Deposit Times for Major Banks
BANK DIRECT DEPOSIT TIME
Axos Bank Up to two days early
Bank of America Same day
BB&T Same day
BBVA Same business day
BECU Same day
Capital One First business day after the deposit
Chase On the day the deposits are received by the bank
Citibank One to 2 business days
Citizens Bank Same day
Fidelity Bank Same day if made before 5 p.m. Monday to Thursday EST or before 6 p.m. EST on Friday
PenFed Credit Union 6 a.m. EST on the day the deposit is received
TD Bank No later than one business day after the deposit has been received
SunTrust Bank Same day
U.S. Bank Immediately
USAA Up to one day early
Wells Fargo Same business day
Woodforest National Bank Same day if your employer/sender has deposited the money before 8 p.m. CST
To receive your paycheck early, get a checking account in a digital bank. Digital banks give early direct deposits. Also, they permit you to access your paycheck up to two days early. Try banks like USAA and Axos. They are superb.