Benefits of Early Access Direct Deposit Over Traditional Direct Deposit
If there’s one day of the week that everyone loves, it’s payday. You work hard throughout the week, so getting paid feels nice and offers more financial security. What makes payday even better is when you have direct deposit. Through direct deposit, you can get your paycheck directly deposited into your bank account and not have to wait for pesky checks or take an additional trip to the bank.
While direct deposit is convenient, you may be able to access early direct deposit with some financial institutions. Early direct deposit can get you your paycheck even faster, typically a day or two earlier than your standard payday. Here are five main benefits of opting for early direct deposit over traditional direct deposit.
1. It can help cash flow
Being able to access your cash up to two days earlier than your standard payday can mean the difference between paying some bills or not. It can mean the difference between having money in your checking account and overdrafting on your account and getting hit with overdraft fees.
Getting paid early can help your cash flow, depending on your situation. This is especially helpful for checks toward the end of the month. Typically, rent/mortgage and other bills are due on the 1st of the month. Getting paid early can improve your cash flow so that you confidently pay those bills that come right at the first of the month on time and in full.
When you get early access to anything, it makes it more convenient. It means having access to your own money even earlier and having availability of cash without waiting.
Two days may not seem like a lot, but for many people, it can mean a world of difference. Many families are living paycheck to paycheck, so early direct deposit can make things more convenient. You work hard for your money so why wouldn’t you want the convenience of getting your paycheck early, compared to the rest of your co-workers?
3. If there are issues, you can catch them early
Unfortunately, sometimes there are issues with direct deposit. Though it can be rare, at some point there could be a mistake or an error with direct deposit.
Having early direct deposit allows you to get paid up to two days early. If you check your account and there’s an error or a missed payment, you can know that even earlier and try to fix it. Whereas if you wait, it could lead to more problems and take even longer to fix.
4. Early direct deposit can help you pay for the unexpected
Have you ever had those months where it seems like so many unexpected things come up? You get an unexpected parking ticket. You forgot it was your sibling’s birthday and you should send a gift. It’s time to pay school dues, etc.
Life happens and many things can come up unexpectedly outside of your day-to-day budget. Getting early direct deposit and having funds up to two days earlier can help you manage unexpected expenses more readily than waiting for traditional direct deposit.
How many times have you been in a situation where you have to hold off on something and wait until payday? Using early direct deposit, you can conveniently have access to your paycheck even earlier than traditional direct deposit.
You might not always need to access your cash two days before payday but it’s certainly nice to have that option. Options are what offers more financial security and flexibility. Having the flexibility to access your money even earlier can make the time between saying “I have to wait until payday” even shorter.
Direct deposit is a huge benefit as it helps you avoid paper checks which can get lost and create more waste. On top of that, you can get paid quickly and more efficiently. Traditional direct deposit is a good option to get paid but if you have the option, early direct deposit can get you your money even faster. Ask your financial institution about early direct deposit options to see if you can sign up for this benefit and get paid up to two days early.