Direct deposit is one of the easiest ways to get paid by your employer. Plus, many of the best free checking accounts provide the ability to set up direct deposits as part of their service.

In the past, when your paycheck was deposited into your account, your available balance would be updated on your actual paycheck date. Today, many banks offer early direct deposit, where you can access your money up to two days early. Not all banks will offer this feature, and the ones that do might only have it available for select accounts.

Keep reading as we show you a few of our favorite banks with early direct deposit, how this feature works, and what you need to do to get started.

How Early Direct Deposit Works

Early direct deposit allows you to receive your paycheck up to two days before your typical pay date. Here’s a walkthrough of how this works.

1. Typically, your employer will begin processing payroll and sending payment instructions to their bank anywhere from one to five days before payday.
2. The payment information will be processed through an Automated Clearing House (ACH) network.
3. Once your bank receives the information on the payment, it will make the funds available immediately instead of waiting until the scheduled payment date when the funds have cleared. For example, most people get paid on Friday, but the money would be available on Wednesday instead.

Bank Accounts With Early Direct Deposit

Interested in using a bank with early direct deposit? Here are eight options to consider.

Discover Cashback Debit Account

With a Discover Cashback Debit Account, Early Pay allows you to get paid up to two days early when you set up eligible direct deposits.

Not only is the Discover checking account free, but it also allows you to earn 1% cash back on up to $3,000 in card purchases each month, making it one of the best rewards checking accounts available.

Pros

• No Fees: You’ll pay no monthly service fee or overdraft fees.
• No Opening Deposit or Minimum Balance: No opening deposit or minimum balance requirement exists.
• Early Pay: Get paid up to two days early with an eligible direct deposit.
• Overdraft Protection: You’ll receive free overdraft protection when your Discover checking account is linked to another Discover account.
• Free ATM Access: You’ll have access to more than 60,000 ATMs.

Cons

• Cash Back is Limited: Earning 1% cash back is limited to your first $3,000 in debit card purchases each month.
• No Out-of-Network ATM Fee Reimbursement: If you use an out-network ATM, the fees will not be reimbursed.
• No Physical Branches: Discover is an online bank, which means it doesn’t have any physical branches. This could be a negative if you like in-person banking.

Make sure you check out the current Discover Bank promotions.

SoFi Checking and Savings

SoFi Checking and Savings Account is another excellent online banking account that offers early direct deposit. Plus, when you sign up for a new account and set up eligible direct deposits, you can earn up to $300 when you complete the following requirements.

1. Sign up for a new SoFi Checking and Savings Account.
2. Set up direct deposits totaling $1,000 to $4,999.99 within 25 days of account opening, and you’ll earn a $50 cash bonus. Set up direct deposits of $5,000 or more, and you’ll earn a $300 bonus.

Pros

• High Interest Rate: Because this is a combined checking and savings account, you’ll earn an attractive 3.80% annual percentage yield (APY) on your savings balance when you have direct deposit. You’ll also earn 0.50% on your checking account.
• Welcome Bonus: Open a new account and set up direct deposits to earn a $300 SoFi bonus.
• Additional FDIC Insurance: Your account is protected with up to $2 million in additional FDIC insurance.
• Early Direct Deposit: When you have eligible direct deposits, you can receive your paycheck up to two days early.
• Fee-Free ATMs: You’ll have access to over 55,000 fee-free ATMs.

Cons

• Must Open Both Checking and Savings Accounts: SoFi requires you to open a checking and savings account. You can’t just have a checking account.
• No Reimbursement For ATM Fees: You’ll be charged a fee if you use an out-of-network ATM.
• Online-only Banking: SoFi is an online bank, meaning it has no physical locations if you prefer to do your banking in person.

Axos Bank Essential Checking

When you have an Axos Bank Essentials checking account and sign up for Direct Deposit Express, you’ll be able to receive your paycheck up to two days early. Additionally, this account has no monthly service fees, overdraft fees, or non-sufficient fund fees.

Pros

• No Fees: There are no monthly maintenance fees or overdraft fees.
• Early Direct Deposit: Sign up for direct deposit, and you’ll receive your paycheck up to two days early.
• No Minimum Opening Deposit Requirements: No minimum deposit is required to open an account.
• ATM Fee Reimbursement: All fees from domestic ATMs will be reimbursed.
• FDIC Insured: The account comes with FDIC insurance, up to $250,000.

Cons

• No Interest Earned: You will not earn interest on your checking account balance.
• Limited Cash Deposits: Cash can only be deposited through Allpoint and Moneypoint locations, which might not be convenient for everyone.
• No Physical Locations: Axos Bank is an online banking option, which means there are no physical locations for in-person banking.

Make sure you check out the current Axos Bank promotions.

Consumers Credit Union Free High Interest Checking

If you’re looking for a credit union to give you early direct deposit, consider Consumers Credit Union Free High Interest Checking. Not only is this a free checking option that will allow you to receive your paycheck up to two days early, but you can also earn up to 5.00% on your checking account balance.

Interest earned is based on the following criteria:

Earn 3.00% APY on balances up to $10,000 when you do the following:

• Receive eDocuments
• Make at least 12 debit card purchases each month
• Have direct deposits, Mobile Check Deposits or ACH Credits that total at least $500 each month

Earn 4.00% APY on balances up to $10,000 when you do the following:

• Meet the requirements to earn 3.00% APY, plus:
• Spend $500 or more in CCU Visa Credit Card purchases each month

Earn 5.00% APY on balances up to $10,000 when you do the following:

• Meet the requirements to earn 3.00% APY, plus:
• Spend $1,000 or more in CCU Visa Credit Card purchases each month

Pros

• High Interest Rate: You can earn up to 5.00% APY on up to $10,000 in your checking account.
• Early Direct Deposit: Get paid up to two days early when you set up eligible direct deposits.
• No Fees: There are no monthly service fees.
• Low Minimum Opening Deposit: Open a new account with just $5.
• ATM Fee Reimbursement: You can get all out-of-network ATM fees reimbursed.

Cons

• Fee To Become Member: A $5 fee to become a credit union member exists.
• Requirements Needed to Earn Interest: If the requirements are not met, the interest rate will drop to 0.01% APY.

Capital One 360 Checking Account

With a 360 Checking Account, you can get paid up to 2 days sooner when you set up direct deposit. But the perks don’t stop there. You’ll also have the opportunity to earn a $250 welcome bonus when you sign up for a new account. Just complete the following requirements.

1. Sign up for a new Capital One 360 Checking Account with promo code CHECKING250.
2. Set up and receive at least two direct deposits of at least $500 each. Eligible direct deposits must be made within 75 days of account opening.

Pros

• No Fees: There are no monthly maintenance fees or overdraft fees.
• Welcome Bonus: Earn a $250 Capital One bonus with eligible direct deposits.
• Early Direct Deposit: Set up qualifying direct deposits, and you can get paid up to two days early.
• Fee-Free ATMs: You’ll have access to over 70,000 fee-free ATMs.
• No Foreign Transaction Fees: If traveling outside the United States, you can use your debit card without being charged foreign transaction fees.

Cons

• Out-of-Network ATM Fees: You’ll be charged a fee when using out-of-network ATMs.
• Limited Branch Locations: There are only a few branch locations, which means that for most, this will be an online-only account.
• Limited Ability to Deposit Cash: Cash can only be deposited at Capital One-branded ATMs, certain Allpoint ATMs, and CVS locations.

Chime® Checking Account

Technically, Chime is a financial technology company and not a bank. However, they do offer a checking account that allows you to receive your paycheck up to two days early with direct deposit. Chime is also a great option for second-chance banking. This is because you can be approved for an account even if you have prior credit issues.

Pros

• No Minimum Opening Deposit: No minimum deposit requirements exist to open a new account.
• No Fees: There are no monthly service fees.
• Spot Me®: If you qualify, you can overdraft your account up to $200 without fees.
• Receive Your Paycheck up to 2 Days Early: You can get paid faster (up to 2 days early) when you set up eligible direct deposits.
• No Foreign Transaction Fees: There are no fees to use your Chime debit card outside the United States.

Cons

• Out-of-Network ATM Fees: You will be charged a fee anytime you use an out-of-network ATM.
• Limited Overdraft Protection: Overdraft protection is only available up to $200.

Chase Secure Banking Account

Chase has several bank accounts available; however, the only account with early direct deposit of your paycheck is the Chase Secure Banking account. Plus, when you sign up for a new account, you’ll be able to earn a $100 cash bonus when you complete the following requirements:

1. Sign up for a new Chase Secure Banking Account.
2. Complete ten qualifying transactions within 60 days of coupon enrollment. (qualifying transactions include debit card purchases, Zelle transfers, ACH credits, online bill payments, and Chase QuickDeposit).

Pros

• No Minimum Opening Deposit: No minimum deposit is required to open an account.
• No Overdraft Fees: You will avoid overdraft fees because any transaction that puts your account into a negative balance will be declined.
• Early Direct Deposit: Set up a direct deposit, and you can get your paycheck up to two business days early.
• New Customer Bonus: New customers could earn a $100 Chase bonus after completing requirements.
• Convenient Online Banking Tools: Stay informed about your account with convenient online banking tools, such as bill pay and mobile deposits.

Cons

• Monthly Service Fee: A $4.95 monthly service fee can be waived when you have eligible direct deposits during any statement period.
• Fees on Non-Chase ATMs: There is a fee for using any non-Cash ATM.

Varo Bank Account

When you have a Varo Bank Account, you can get paid up to two days early with direct deposits. Plus, in addition to an early payday, a Varo Bank Account comes with no fees. That means no monthly fees, overdraft fees, minimum balance fees, or transfer fees.

Want even more? How about earning cashback? Varo allows you to earn cashback from more than 10,000 different businesses.

Pros

• High APY: Varo Bank Account is a combined checking and savings account. With the savings account, you can earn up to 5.00% APY.
• No Fees: Varo has no monthly service fees, overdraft fees, or other fees.
• Early Direct Deposit: When you set up direct deposits, you can receive your paycheck up to two days early.
• Earn Cashback: You can earn cashback at select retailers.
• No Foreign Transaction Fees: You can use your debit card outside the United States without a fee.
• Fee-Free ATMs: You’ll have access to over 55,000 fee-free Allpoint ATMs nationwide.

Cons

• No Physical Locations: Varo is an online bank without physical locations for in-person banking.
• No Joint Accounts: You cannot have a joint bank account with a spouse or significant other.

What Are The Benefits of Early Direct Deposit?

Having your paycheck reach your bank account early has many benefits. If you’re living paycheck-to-paycheck, having access to your paycheck early could mean you avoid over-drafting your account. Below are a few additional benefits.

• Earn Extra Interest: If you have an account that pays an APY on the balance, you can earn extra interest by having your paycheck up to two days early.
• Improved Cash Flow Management: Early access to your paycheck can also help your cash flow. If you can schedule your bills, you can avoid late fees by making payments before they’re due.

Qualifying For Early Direct Deposit

Not all direct deposits are eligible for early direct deposit benefits. Most banks require the direct deposit to be an ACH deposit from your employer or a government benefits payments. On the other hand, person-to-person payments would not be eligible.

Some banks will also have a minimum direct deposit amount before you qualify for early direct deposit. For example, you might need $1,000 in monthly direct deposits; anything less would not be eligible to receive your direct deposit early.

How to Sign Up For Early Direct Deposit

Most banks don’t require you to sign up to receive the early direct deposit benefits. However, you must sign up to receive your paycheck through direct deposit from your employer. To do this, you must talk to your employer’s human resources department and provide them with your bank account routing and account number. You’ll also want to ask them if any other information is needed to get everything set up.