Direct deposit is an electronic payment method that started out as a perk but is now the most common way businesses pay their employees. However, just because direct deposit is omnipresent doesn’t mean everyone knows what time to expect direct deposit to hit their bank account.
In this post, we’ll discuss what direct deposit is, the benefits of using it, and most importantly, when you can expect direct deposit to hit accounts for major banks and credit unions, such as Bank of America, Chase Bank, and much more.
What Is Direct Deposit?
Direct deposit is a fully automated method of handling transactions electronically. The electronic network that allows these transactions to take place is the Automated Clearing House (ACH).
A direct deposit occurs when an employer, agency, or any other party provides its financial institution with instructions to make a digital deposit directly into your bank account on a particular date.
The most common uses for direct deposit are paychecks, tax refunds, and many other benefits.
With direct deposit, there is no need for a physical, paper check or the need to make a trip to the bank to deposit the funds. Since recipients’ accounts are credited automatically, there is also no need to wait for the money to clear.
To set up direct deposit, your employer or other payers will provide you with a form to fill out. While filling out the form, you will provide your name, your address, the name of your bank, your account number, and your routing number. You may also be required to provide a voided check.
What Time Does Direct Deposit Hit?
Considering direct deposit is intended to be immediate, direct deposit should hit the same day it’s sent. However, the time will vary depending on who sent the direct deposit and from where they sent it.
It also depends on the agreement between the individual bank or credit union and the Automated Clearing House.
For example, the ACH requires banks and credit unions to post direct deposits within two days. This system helps ensure all employees receive payment according to the payroll schedule.
With that said, you can typically expect the direct deposit to hit your bank account by midnight on your payday.
As for direct deposits regarding other sources, the money should hit your bank account on the same day or within one business day.
Tip: If you want to receive your direct deposit earlier, consider opening a checking account with a digital bank, such as AXOS. They offer early direct deposits, allowing you to receive your paycheck up to two days early.
Other Factors that Can Affect when direct deposit hits
Here are a few other factors that may affect when your direct deposit hits:
- Day of the week: Direct deposits can only happen when both the ACH and the Federal Reserve System are open, which is typically on business days only.
- Holidays: National holidays can affect direct deposit and the time it hits your account. However, direct deposits should be submitted earlier so that recipients can receive their check at the normal time. For example, if Friday is a national holiday, the direct deposit should hit the last business day prior to the holiday.
- Reserve obligations: Banks and credit unions are required to have enough cash on hand, known as a reserve ratio, to cover unexpected demand. This ratio is typically irrelevant with regards to small deposits. However, when a large deposit such as $3,000,000 is made, the bank is required to have enough cash on hand to meet the reserve ratio. With such a large deposit, more money is required to meet its minimum reserve.
Benefits of Direct Deposit
Direct deposits have many benefits for both employees and employers, which is why many companies and even the government have started using them.
Here are several benefits of direct deposit:
You don’t have to worry about a paper check getting lost, stolen, or even damaged, which can be quite a headache, especially when it’s your paycheck. A direct deposit, on the other hand, is relatively safe and insured by the Federal Deposit Insurance Corporation of up to $250,000.
You get immediate access to your money much quicker through direct deposits than paper check deposits. In addition, there are also no holds on the money, so you can use the cash the same day that the direct deposit hits your bank account.
Less Trips to the Bank
Since direct deposit is made electronically, you don’t have to make constant trips to the bank to cash your check. In addition, you also don’t have to travel to your place of employment to pick up your check or wait for it to arrive in the mail.
Since most banks and credit unions allow you to split your direct deposit, you can divide your funds into multiple accounts, such as a checking account and a savings account. This will allow you to automate your savings so you don’t even have to think about it.
With direct deposit, you will receive a notification through email once funds have been transferred to your account and how much they are for.
Direct Deposit Times for Major Banks and Credit Unions
Here is a table listing the direct deposit times for 30 major banks and credit unions in the United States.
Note: While distribution of funds to banking institutions through direct deposit is the responsibility of payroll services such as ADP, individual banks and credit unions ultimately determine when direct deposits hit accounts.
|Bank/Credit Union||Direct Deposit Time|
|Axos bank||Up to 2 days early|
|BBVA||Typically same business day|
|BB&T||Usually same day|
|Bank of New York||Between 2 AM and 5 AM|
|BECU||Usually same day|
|Bank of America||Usually same day|
|Chase||Typically by 6:30AM (EST) the day deposits are received|
|Citizens Bank||Typically between 3AM and 6AM (EST) the day|
|Capital One||No later than 9 AM (PST)|
|Citibank||No later than 7 AM the business day after deposit is made|
|Central National Bank||Typically between 1 AM and 4 AM on payday|
|Fifth Third Bank||Usually same day|
|Fidelity||Typically between 12 AM and 7 AM (EST) same day|
|First American Bank||Between 2 AM and 5 AM on payday|
|HSBC||Between 12 AM and 2 AM same day|
|Navy Federal Credit Union||Between 12 AM and 6 AM (EST) Monday through Friday|
|PNC Bank||Typically between 12 AM and 8 AM (EST)|
|PenFed Credit Union||Between 6 AM AND 8:30 AM (EST) the day the deposit is received|
|Regions Bank||Between 3 AM and 9 AM the day before payday|
|State Employees Credit Union||Overnight processing if deposit is received by 5:30 PM|
|SunTrust Bank||Typically between 12 AM and 7 AM (EST) on payday|
|Security Service Federal Credit Union||Typically between 4:30 AM and 6 AM (CST)|
|Santander Consumer Bank||Between 6 AM and 9 AM the day the deposit is received|
|TD Bank||No later than 6AM the business day after the deposit has been made|
|Tanus Bank||Between 1 AM and 4 AM on payday|
|U.S. Bank||Typically 8 AM (PST) on payday|
|Union Bank||Approximately 8:30 PM the day before payday|
|USAA||Up to 1 day early|
|Wells Fargo||Typically 6:30 AM (EST) on the same business day|
|Woodforest National Bank||Same day if deposit is made before 8 PM (CST)|
While you can typically start using funds on the same day they are deposited into your bank account, sometimes they may only be available for use one business day after the deposit has been made.
Frequently Asked Questions (FAQs)
Many people also have questions about when direct deposit will hit for various governmental agencies, such as the IRS, SSI, DOL, and even tax refunds.
Here are the answers to those questions and more:
What Time Does Direct Deposit Hit Unemployment?
The specific time direct deposit will hit for unemployment varies from state to state. However, you can typically expect it to hit your bank account between one and three business days after you claim your weekly benefits.
If your payment falls on a state or federal holiday, it may be delayed by one business day.
What Time Does Direct Deposit Hit For the IRS and Tax Refunds?
According to the IRS, 90% of people who file electronically and combine it with direct deposit, receive their IRS tax refund in less than 21 days.
Filers who opt to use direct deposit to receive their tax refund also received an economic impact payment quicker than those who didn’t.
What Time Does Direct Deposit Hit For SSI?
Direct deposit for SSI will automatically hit your bank account on a specific day every month.
The majority of banks typically update member accounts and deposits right at 12 AM so you should receive your SSI funds at 12:01 AM on the day you receive your payment.
What Time Does Direct Deposit Hit on Cash App?
According to Cash App, direct deposits are typically available the moment they are received, which can be up to two days earlier than many banks.
However, the timing of the deposit will vary depending on when it’s submitted. This is typically anywhere between 1 and 5 business days after it has been sent.
With that said, your first direct deposit may take longer to be available depending on your employer.
Why Is My Direct Deposit Late?
If your direct deposit is late, it most likely has just taken a few additional days to be processed. This can be a result of national holidays or the transfer going out after business hours.
If a day or two has passed and you still haven’t received your direct deposit, you should contact payroll, call your bank, or talk to your boss. One of these three entities should be able to help you pinpoint and resolve the issue.
Final Thoughts on Direct Deposits for Banks and Credit Unions
As provided above, the time of day direct deposit will hit depends on your bank or credit union. Even direct deposits from various governmental agencies will hit at different times.
However, thanks to payroll firms and payroll software, the amount of time required for direct deposits to be processed is definitely shortened.
With that said, you can almost always expect to receive your direct deposit on or even before your payday.
Knowing the direct deposit times for the banks and credit unions provided above will allow you to budget accordingly and minimize stress and worry regarding your paycheck.
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