– 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

The bank is essentially giving you a very very short term loan, based on either the fact that your company’s payroll has already run and is sitting there with a future pay date, or, they’re confident enough with your pay frequency that they are willing to front it