Chase is now letting its Secure Banking customers access their direct deposits up to two business days earlier.
The new early direct deposit offering, which is beginning this month, applies to eligible direct deposits such as payroll, tax refunds, government benefits and pensions — categories that cover nearly 90% of Secure Banking direct deposits, Chase said Wednesday (Oct. 19) in a press release.
“Secure Banking customers have told us that early access was one of the most appealing benefits we could offer,” Chase Head of Growth Financial Products Ryan MacDonald said in the press release. “At a time when budgets are stretched thin by competing priorities, this is a compelling option to give households more control over how they manage their financial lives.”
Customers don’t have to enroll for early direct deposit; Secure Banking customers who have direct deposit will automatically receive it. They can sign up for direct deposit alerts that will notify them via text, email or push notifications when their money is available, according to the press release.
“Millions of customers rely on payday to keep up with their bills, so having early access helps them manage unexpected expenses and avoid potential late fees,” Chase Consumer Banking CEO Jennifer Roberts said in the release. “This is another way we are giving customers more value and greater flexibility over their finances.”
PYMNTS research has found that the expectation for low-friction and instant payments has grown during the pandemic for both individual and businesses.
Read more: PYMNTS Intelligence: Finding the Way to Better Government Disbursements
This interest in instant payments is particularly high among millennials and bridge millennials, and while interest is highest for free instant disbursements, many consumers would even be willing to pay to have funds deposited more quickly, according to “Money Mobility: Innovating The Future Of Government Disbursements,” a PYMNTS and Ingo Money collaboration.
The bank is debuting this feature — which accelerates payments including payroll, tax refunds, pensions and government benefits by up to two days — for customers of its Secure Banking product, starting this week, according to Ryan MacDonald, head of growth financial products for Chase.
That typically means getting paid on a Wednesday rather than a Friday, he said.
"Those couple days are often the difference between looking for money from family or not paying that bill on time and getting charged a late fee," MacDonald said in an interview.
JPMorgan, the biggest U.S. bank by assets, is taking this step as the industry faces rising pressure from regulators and lawmakers on overdraft and other fees. While smaller rivals including Capital Onehave said they are dropping overdraft fees, the CEOs of the three largest U.S. institutions have repeatedly refused calls to end the charges altogether.
Instead, banks have drawn attention to existing products that protect users from overdraft fees, while still offering most of the functionality of full-service accounts.
For JPMorgan, that product is Secure Banking, which has no minimum balance requirement and costs $4.95 a month. The service, which is targeted to households that earn around $55,000 or less a year, has about 1.4 million users, MacDonald said. Most customers have direct deposit and will automatically begin receiving early payments, he added.
The bank, which says it serves more than 66 million U.S. households overall, can be a "fast follower" of fintech rivals when they create must-have features, MacDonald said. Start-ups including Chime and Current have popularized early direct deposits as they've gained millions of cost-conscious users.
"The fintechs are doing a good job of entering the space and trying to disrupt by offering services," MacDonald said. "Customers didn't even think about early access to payment before some of these players came in. As we evaluated it, we think that there's a real need for certain customers to have this."
Unlike the newer, app-reliant players, however, JPMorgan's value proposition includes both digital services and a broad physical network of about 4,700 branches and 16,000 ATMs, the executive said.
The bank is working on introducing other solutions for this group, including small loans or installment products, to help users smooth out their financial needs when emergencies arise, he added.
Banking / Banks
What Time Does Direct Deposit Hit? Direct Deposit Times at Major Banks
By Joshua Rodriguez
October 28, 2022- About Direct Deposit
- Direct Deposit Times
- Benefits
- Major Banks Direct Deposit Times
guruXOOX / iStock.com
A direct deposit was an added perk offered by banks back in the day, but it has become a default option for most users. However, the feature’s ubiquity doesn’t automatically mean that everyone knows about precise direct deposit times.
In most cases, direct deposits will hit your bank account at a set time each payday, but that may differ depending on your bank. It may take a few hours or days for your direct deposit to reflect in your bank account balance.
More From Your Money: Choose a high-interest saving, checking, CD, or investing account from our list of top banks to start saving today.
What Is Direct Deposit?
Technological innovation has changed the banking process for the better. Previously, payees had to go to the bank to cash their paychecks. However, the payer can initiate an electronic payment readily deposited into the receiver’s bank account with direct deposit.
While paper check deposits took anywhere from two to five days for clearance, direct deposit is just as it sounds — direct. The payee does not have to wait for a long time to receive their payment.
A Better Way to Bank
To set up direct deposit, you must fill out a form provided by an employer or the government. You’ll need to fill in your name, address, account number, and your bank’s name and routing number.
What Time Does Direct Deposit Hit?
Direct deposits are instantaneous, meaning you get paid the same day the payer sends the money. However, the time frame for receiving this money depends on who sends the money and from where.
For example, your employer has a system that ensures every employee gets paid per the payroll schedule. In this case, you can expect the direct deposit to hit midnight on payday.
Although it’s important to keep in mind that each financial institution is different. For example, if your bank receives your deposit at midnight, it may take a few hours for the bank’s records to show the deposit. If your deposit hits on a holiday or a weekend, it could further delay the funds showing up in your account.
Keep In Mind
Meanwhile, direct deposits from the government, such as social security benefits, arrive on the second, third or fourth Wednesday of the month. If Wednesday is a national holiday, the direct deposit will hit the last business day before the holiday.
A Better Way to Bank
As for other direct deposit sources, the amount arrives in your bank account within one business day or the same day. More importantly, direct deposits are not generally held by the bank.
Benefits of Direct Deposits
Direct deposits have many benefits, which is why many employers and the government have adopted them. Here are some of the benefits of direct deposit:
- Quicker access
- Less travel
- Heightened safety
- Automated savings
- Avoid bank fees
- Never misplace a check
Direct Deposit Times for Major Banks
Wondering what time banks process direct deposits? Here’s a table showing the direct deposit times for major banks in the U.S.:
BankDirect Deposit TimeAxos BankUp to two days before scheduled paymentBank of America, Member FDICSame dayBECUImmediately when the deposit is receivedCapital OneImmediately when the deposit hits the bankChaseBetween 3:00 and 5:00 a.m. the day after the deposit is sentCiti®Between 12 a.m. and 7 a.m.Citizens BankAs soon as the bank receives the deposit on business daysFidelity BankAs soon as the bank receives the depositPentagon Federal Credit UnionImmediately when the bank receives the fundsTD BankThe day the deposit is receivedTruistAs soon as Truist receives the fundsU.S. Bank8 a.m. PST on paydayUSAAUp to one day earlyWells FargoUp to two days before scheduled paymentWoodforest National BankAs soon as the bank receives the depositA Better Way to Bank
In most cases, you can start using the money on the same day it’s deposited into your account.
Final Take
Whether your bank account shows your direct deposit at midnight or a few hours later, it’s the quickest way to access your funds. After all, if you decide to get paid using a paper check, you may have to wait several business days for your check to clear before you gain access to the money. If your employer offers direct deposit, now’s the time to sign up.
Direct Deposit FAQ
When it comes to direct deposits, some of the most common questions include:- What time of day does direct deposit hit?
- The timing can vary from one financial institution to another, so it's best to check with your employer, payroll company and bank.
- What time is a direct deposit paid?
- Direct deposits are typically paid at midnight when they hit your account.
- Why hasn't my direct deposit hit yet?
- There are multiple reasons your direct deposit may not be showing up in your bank account, but the two most common include:
- The deposit was made after the cutoff time.
- There is a delay between when the deposit was made and when the funds were available.
- If your direct deposit doesn't hit your bank account when you think it should, your best action is to contact your bank.
- There are multiple reasons your direct deposit may not be showing up in your bank account, but the two most common include:
- How does direct deposit work if I get paid on Friday?
- Direct deposit works the same regardless of which day you're paid. Your employer makes a payment, and it shows up in your bank account. On the other hand, if you expect your direct deposit on a weekend or holiday, you'll typically receive your money the business day before payday, especially when you work for a government employer. However, some private employers may process direct deposits the business day after payday when your payday falls on a weekend or holiday.
Scott Jeffries contributed to the reporting for this article.
Information is accurate as of Oct. 27, 2022.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
View Sources
Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.
- Forbes. 2021. "Your Complete Guide To Direct Deposit."
- Namely. 2022. "What Happens When Payday Falls on a Holiday or Weekend? | Namely Blog."
- Business Insider. 2022. "30 bank accounts that will process your paycheck up to 2 days faster with early direct deposit."
- Regions. "5 Common Ways to Avoid Monthly Banking Fees."
- Consumer Financial Protection Bureau "Should I enroll in direct deposit?"
Share This Article:
By Joshua Rodriguez
October 28, 2022Related Articles
- Banks Open on Sunday
- Chime Bank Name: What To Use for Direct Deposit
- Wells Fargo Drive-Thru ATMs Near Me
- Can You Open a Bank Account With No Money?
- Here's Your Truist Routing Number
A Better Way to Bank
About the Author
Joshua Rodriguez
Joshua Rodriguez is a personal finance and investing writer with more than 10 years of experience. He is the founder of CNA Finance. His work has been featured on U.S. News & World Report, Money Talks News and several other mainstream outlets.