– how do some banks make paychecks available several days before the typical “payday”, while others don’t see them until actual payday?

Question

I get paid semi monthly. Usually I can expect to see my check on the actual payday, with my paystub showing the night before.

I got an email from my bank saying they will start showing deposits three days earlier now.

How does this work if payroll doesn’t pay out until specific days?

In: Other

Answer 1

This is a gimmick feature that does not benefit you. If you normally get paid every other Friday, you are going 14 days between paychecks. If you now start getting those deposits one day early on every other Thursday, you are still going 14 days between paychecks.

Your bank is notified of the incoming deposit before the money actually hits your account. They are giving you access to the money upon notification instead of upon receipt. Thats how you get it early.