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Life and surprise expenses don’t always align with payday. It is important to be proactive in order to protect yourself (and your bank account) from unforeseen circumstances. Marygold & Co. banking services enable you to get your direct deposit paid up to two days earlier, certainly helping with those unexpected bills and expenses. But how does early direct deposit work?

how does early direct deposit work

What is Early Direct Deposit?

Early direct deposit allows you to access your paycheck funds faster than most traditional banks.

The overwhelming majority of Americans receive a direct deposit of their paycheck. Depending on your payroll company, direct deposits are sent via ACH to your bank account up to two days early along with a designated posting date. Most institutions hold these funds until the paycheck posting date while actually earning interest on those funds.

Marygold & Co. will credit customer direct deposits on the date funds are received providing access to pay up to two days early.

Advantages of Early Direct Deposit

Direct deposit is already fast, convenient and the safest way to get paid. Getting paid early makes it that much better!

With early direct deposit, if your Marygold & Co. account receives your paycheck early, so do you.

Setting up direct deposit is easy and receiving your paycheck early with Marygold & Co. is automatic. With direct deposit, you can truly “set it and forget it.” Once you set it up, you’ll never again worry about accessing your paycheck funds.

With early direct deposit, your money can be earning interest up to two days earlier. This interest affords you more spending power for free.

How Do You Get Started?

  • Fill out your employer’s Direct Deposit Forms.  

Marygold & Co. customers can automatically access these forms for over 80,000 employers right from their app.

  • Send Payment Instructions 

Ask your employer to send payroll instructions to their bank.

  • Pass Payment Information 

Once your employer’s bank receives payment instructions it sends these data files to an Automated Clearing House. This starts a bank-to-bank electronic transfer from the employer’s bank to yours.

  • Organize Payment Information

The Automated Clearing House will organize all of your payments so that each payment is correct and sent to your bank.

  • Process the Payment

Once your bank receives its payment instructions, it starts the payment process.

mobile banking deposit

Is Direct Deposit Safe?

Yes! Direct deposit is an electronic payment.

It actually passes through fewer hands than other deposit methods.

CreditRepair.com notes that direct deposit is the safest way to receive funds.

The United States Department of the Treasury and the Federal Reserve Bank dispel myths that point to a lack of safety of direct deposits.

Does Direct Deposit Work for Weekend Payments?

Direct deposit processes on business days. This excludes weekends and bank holidays.

What Happens if my Payday is a Holiday?

Direct deposits are usually paid on the banking day before the holiday. So, if Christmas fell on a Friday, your direct deposit would most likely occur on the Thursday before.

mobile banking savings account

Can My Direct Deposit Go Into My Savings Account?

Your direct deposit can typically be directed into the account of your choice and/or be split between accounts, like Marygold & Co. Money Pools.

How does Early Direct Deposit Differ from a Wire Transfer?

Wire transfers cost $35 nationally and $45 internationally. Direct deposits are free and are processed via Automated Clearing House (ACH).

Fastspring.com explains the difference between the two. Direct deposits are processed overnight. Wire transfers are processed and deposited instantly, however international wire transfers do take a little longer. So, early direct deposit is much faster than direct deposit but not as fast as a wire transfer.

Marygold & Co. Early Direct Deposit

Banking with Marygold & Co. gives you the most for your hard-earned dollars. Marygold & Co. offers fast, convenient mobile banking that includes early direct deposit and interest-earning APY. Marygold & Co. bank accounts are provided by Radius Bank, Member FDIC, a pursuant license from Mastercard International.  Deposits are guaranteed by FDIC insurance up to the maximum allowed for every client’s account.

For more information on Marygold & Co.’s early direct deposit and free, convenient mobile banking services, check out our other blogs.