What time does money deposit into bank? US banks’ deposit times

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by Aidan Kang, CFA

Senior Writer

Saving & Budgeting

UPDATED: October 13, 2022

Are you waiting for your direct deposit to hit your bank account? 

Having a direct deposit guarantees faster payment as the funds are automatically deposited in your account with minimum or no delays. However, it's understandable to wonder why your direct deposit hasn't hit your bank account on pay day.

Wondering what time your paycheck will be in your account can be nerve-wracking, so let's find out whether your direct deposit is on its way.

We've researched official sources and reached out to major banks and credit unions to confirm their direct deposit times in 2022 to give you information that’s accurate and up-to-date.

In this blog post, we'll tell you when do direct deposits hit bank accounts so you can plan accordingly and minimize the stress that comes with wondering whether or not your paycheck has been deposited yet.

What Is A Direct Deposit?

A direct deposit is an electronic payment system that allows an employer or sender to electronically transfer funds (your salary) into the bank account of the receiver. 

This is an alternative to receiving traditional paychecks or paper checks.

Instead of having to receive a paper check that you need to either cash-out in a bank account or deposit into your account and wonder what time do checks clear in the morning, you can simply have the money deposited directly into your account.

You need a bank account so that the sender can transfer your funds directly into it. The process is called an Automated Clearing House (ACH) transfer, and it's a very popular way of paying employees in America.

Most banks can receive ACH transfers, but you'll need to provide the sender with the correct bank routing and account numbers. 

A routing number is a nine-digit number that identifies the financial institution that holds your account, while the account number is the specific number assigned to your bank account. 

Your bank can provide you with both of these numbers if you don't already have them.

What Time Do Direct Deposits Hit?

Many people are often confused and wonder what time do direct deposits post.

Perhaps some of your coworkers have received their salary early while you're still waiting for yours to reflect in your bank account. 

So, how long does a US bank direct deposit take? While the idea behind direct deposit is that it will be available on your bank account the same day or even instantaneously after your employer sent the money, the truth is that the length of time actually varies.

Several factors can affect the length of time a direct deposit will hit your bank account. 

• how long it takes for ACH processing to clear
• the bank your employer or sender is transferring the money from
• what time payroll deposits the funds for transfer
• the bank or credit union you’re using

So, what time does direct deposit hit? It’s generally 8:00 a.m. (PST) on payday. This is also similar to the time credit unions post direct deposits.

However, if you have a Chase or Bank of America account, that time frame will be different.

What Time Direct Deposits Hit Major Banks

To give you an idea of the usual direct deposit times for major banks in the country, we have created a table for your reference. You can use this table to check if your money is taking longer to arrive than usual so you can check with your payroll or sender if there's a problem. What time direct deposit hit major banks are as follows:

FAQ: Time Direct Deposits Post

Do Direct Deposits Go Through On Sundays?

Typically, direct deposits can not hit on Sunday. The ACH Network doesn’t settle payments on holidays and Saturdays and Sundays when the Federal System is closed. 

The common business practice when a payday falls on a weekend (Saturday or Sunday) is to send the payment either on a Friday or Monday. Don't expect to receive a direct deposit on Sunday.

According to the Consumer Financial Protection Bureau, your funds transferred via direct deposit should be made available by the bank or credit union on the next business day after the payment has been made by the employer or sender.

However, many banks and credit unions already make the funds available on the same business day just like same day payday loans online, or even immediately in direct deposit payments. You may have a peace of mind checking which banks deposit on Sundays if you need your pay on a fixed date every month without fail.

Whether your funds will be made available on Friday or Monday will depend on the policy of your bank.

What time does early direct deposit hit?

Early direct deposits hit your bank account up to two days early depending on whether your checking account offers this option. Certain major banks that offer early direct deposits include OneUnited bank, AXOS bank, USAA, Capital One bank and Wise Cash App.

Does Direct Deposit Go In at Midnight?

Yes, direct deposit can go in at midnight for some banks. Again, this will depend on your bank and its policies. 

Some popular financial institutions wherein the direct deposit hits the recipient’s bank account from 12:00 a.m. include BB & T, Citibank, Fidelity Bank, PNC Bank, and Navy Federal Credit Union.

How Long Does It Take to Get Unemployment via Direct Deposit?

If you’re a citizen or permanent resident of the United States, you could be eligible for unemployment insurance. 

Unemployment insurance is a benefit issued by the state or federal government to people who lost their jobs at no fault of their own.

If it's your first time claiming unemployment insurance, you would need to set up a direct deposit first to receive the claim. This setup process usually takes 5 to 7 days but the period will depend on your state of residence.

If the direct deposit account is already set up, you can expect the money to be in your bank account within 48 hours of the approved claim. Again, the exact time will depend on your state of residence as well as the bank that you use.

How Long Does It Take to Reject a Direct Deposit?

In some cases, there might be some mistake on the direct deposit and the recipients may have to reject it if the money is not intended for them. 

In this case, many payroll officers or HR staff usually ask how long it takes for banks to reject a direct deposit.

When the recipient or sender notifies the receiving bank to reject a direct deposit, what usually happens is that the money is refunded to the bank account of the sender.

Unfortunately, there’s no exact time frame for this kind of scenario because it depends on the bank and the rejection process happens on a case-to-case basis. 

According to a Reddit thread, however, it typically takes 2 business days from the date of the deposit for a receiving bank to reject it. 

This time could be shorter or longer depending on the banks involved and the location of the transfer.

Why Is My Direct Deposit Late?

If you’re still waiting for the direct deposit to reflect in your bank account and it's already more than a few days since the scheduled date, it's best for you to inquire about the status of your money with your employer and find out when will the direct deposit hit.

Below are some other possible reasons why your direct deposit did not come on time as expected:

• The payment date fell on a holiday or weekend so you will receive it on the next business day.
• The transfer or notification was sent after the cut-off time set by your bank.
• There was a mistake in the direct deposit process.
• The bank is holding the funds to check whether the transfer is legitimate. This happens in some cases, especially if the amount is larger than usual or the source of the funds is not clear. 

If your direct deposit is late, the best approach is to call your bank to check the status of the transfer and find out what time do deposits post for your particular bank. You can also call your employer to clarify if the deposit has been made.

Are Direct Deposits Safe?

Yes, direct deposits are safe. In fact, direct deposit is one of the safest and most reliable methods of payment. 

Even the United States Federal Government uses direct deposit to pay their employees.

Many people have this misconception that direct deposit is unreliable and not secure because it uses electronic transfer. However, you'll be surprised that using direct deposit is actually much safer than the old method of issuing checks for payroll.

When you use direct deposit, there’s minimum human involvement in processing your payment. You don't need to physically get the check and go to the bank to cash it. You also reduce the risk of the check being stolen or lost.

Since the payment is directly made to your bank account, this also eliminates the possibility of other people having access to the personal information and details that are printed on the paper check.

For example, a paper check will not only have the bank account details of the employer, but it will also have the employee's full name and address. 

If a paper check is lost or misplaced, these details can be used for identity theft.

Conclusion

Tracking and knowing the approximate time direct deposit will deposit into your bank account can help you minimize your stress and more importantly, plan your finances better. It can also help you meet your deadlines and other financial obligations. This will reduce the possibility of incurring additional charges because of late payments or penalties from your creditors.

Aidan Kang, CFA

Aidan has been writing about personal finance for over 6 years. Prior to this, he worked as a Corporate Finance Analyst where he specialized in Due Diligence, Company Valuations and more. He is a CFA charterholder.