Ally Bank to offer Early Direct Deposit

[anon_investor]

My spouse received an email from Ally Bank that mentioned:

Coming soon.
In the coming months we'll be launching Early Direct Deposit. Eligible customers will be able to receive their paycheck up to 2 business days faster.

It came in an email explaining how to qualify for CoverDraft (expaned overdraft coverage of $250 instead of the standard $100).

I received an email yesterday that mentioned I qualified for CoverDraft, but it did not mention anything about Early Direct Deposit. I look forward to that feature.

[pasadena]

Good news! I got an email about the CoverDraft thing, but I don't qualify because I've only received one DD in the past 2 months. I will get another one on two weeks, so we'll see what happens then. I also may not qualify in the future because those DD are deposited in my savings account, not checking. Meh.

I sure hope Early DD will be rolled out for both checking and savings accounts.

[anon_investor]

Good news! I got an email about the CoverDraft thing, but I don't qualify because I've only received one DD in the past 2 months. I will get another one on two weeks, so we'll see what happens then. I also may not qualify in the future because those DD are deposited in my savings account, not checking. Meh.

I sure hope Early DD will be rolled out for both checking and savings accounts.

There were no additional details, but I assume it will be targeted to checking accounts. I have my DD hit my Ally checking account then transfer funds among a few Ally savings accountd and have my mortgage and CC bills pulled via ACH from those Ally savings accounts.

[JupiterJones]

I switched banks last year (not to Ally--a different bank) and the new checking account has this as one of its features. I guess once they get the notice of the incoming DD they just go ahead and credit the account?

I've never been a "living paycheck-to-paycheck" guy, so it really doesn't make much difference to me if I get it a few days earlier (or later, for that matter). I guess it does make things a bit simpler when I do my monthly review of the household finances.

[galawdawg]

I've never been a "living paycheck-to-paycheck" guy, so it really doesn't make much difference to me if I get it a few days earlier (or later, for that matter). I guess it does make things a bit simpler when I do my monthly review of the household finances.

I do wonder what benefit that feature has for anyone who is not living beyond their means. But, I suppose for the many Americans who do...

[anon_investor]

I've never been a "living paycheck-to-paycheck" guy, so it really doesn't make much difference to me if I get it a few days earlier (or later, for that matter). I guess it does make things a bit simpler when I do my monthly review of the household finances.

I do wonder what benefit that feature has for anyone who is not living beyond their means. But, I suppose for the many Americans who do...

It is not life changing, but I usually invest a portion of each pay check in my taxable account, so getting to do so 2 days earlier would be nice!

[patrick]

Although I'm not familiar with the details, I suspect that many people will not get their deposits early. Such offerings generally only work for employers that send out ACH instructions earlier than necessary.

[Broken Man 1999]

Our credit union offers early direct deposit, for a fee of $3.00. I have to believe some people use the opportunity.

The CU also offers online greeting cards that can be sent along with a transfer of money.

I don't use either opportunity, but it doesn't bother me that they are made available. Someone else paying for services helps me to continue to pay no fees for the services I do use.

Broken Man 1999

[ee_guy]

Although I'm not familiar with the details, I suspect that many people will not get their deposits early. Such offerings generally only work for employers that send out ACH instructions earlier than necessary.

For folks receiving social security payments, the monthly payment could show up as much as 2 weeks earlier with early deposit.

[the_wiki]

If it is always 2 days early, then it only works for the first one. After that, your next paycheck is still 2 weeks away every time. Money won't last any longer than it did before, even if you are living paycheck to paycheck.

[SnowBog]

As an FYI Fidelity does this by default now, see it from both mine and spouses paycheck.

It's a "nice" benefit. But something we can live without.

[nolesrule]

Capital One started doing this in early 2021. My wife's MegaCorp paycheck always shows up 2 days early. Mine shows up 1 or 2 days early.