What is early direct deposit and how does it work?

Next time you are in a financial pinch, this option can get you early access to your paycheck

Payday end of month date on calendar circled with red marker
Early direct deposit "allows you to get paid up to two days early — or in some cases, even earlier"
(Image credit: Brian A Jackson / Getty Images)

If you are facing a tight time financially, there will be months when receiving your paycheck even a little bit earlier will offer some much-needed relief. The good news is, there are several ways to make this happen — although they are not all created equal.

One avenue is online paycheck advances, which a "growing number of Americans who need cash before their next payday are tapping," said The New York Times. But these advances carry fees. Another option is early direct deposit; if you have a bank account at an institution that offers it, this choice "allows you to get paid up to two days early — or in some cases, even earlier, depending on the type of deposit," said Experian. Plus, there are no fees involved. 

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Becca Stanek, The Week US

Becca Stanek has worked as an editor and writer in the personal finance space since 2017. She previously served as a deputy editor and later a managing editor overseeing investing and savings content at LendingTree and as an editor at the financial startup SmartAsset, where she focused on retirement- and financial-adviser-related content. Before that, Becca was a staff writer at The Week, primarily contributing to Speed Reads.