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What is Early Pay and How Does It Work?

May 3, 2023


Are you among the 93% of U.S. employees who receive their paycheck through direct deposit? Have you ever wished you could get paid just a little bit earlier? Especially in these turbulent economic times, getting your hands on your hard-earned money a day or two earlier can help you pay bills, buy groceries, and more. Moody Bank is pleased to offer Early Pay to our customers–keep reading for everything you need to know about Early Pay, how it works, and what the benefits are.


What Is Early Pay?

Early Pay is a convenient service that gives you access to your direct deposit funds up to two days earlier than the scheduled payment date. In other words, if you get paid via direct deposit, you can receive your paycheck a little sooner than scheduled.


Usually, direct deposits are sent to your checking account via ACH up to two days early with a designated posting date. Then banks hold the funds until the paycheck posting date. Early Pay simply makes your direct deposit available to you as soon as it’s sent (access to funds depends on the timing of the submission of the payment).



How To Set Up Direct Deposit

To set up Early Pay, you need to enroll in direct deposit from your employer (if you aren’t enrolled already). This is a simple process that just requires you to complete a form with basic personal information as well as your bank account and routing number.


It’s important to note that not all direct deposits are eligible for Early Pay. Only consumer accounts, not commercial, are eligible. For interest-bearing checking accounts, incoming direct deposits will start to accrue interest on the business day that your deposit is received.


Benefits of Early Pay

With Early Pay, you can better manage your cash flow and:


  • Pay bills on time
  • Deal with unexpected expenses
  • Avoid using credit cards or payday loans because you ran out of cash


Of course, using Early Pay won’t solve the problem of living paycheck to paycheck. If that is your situation, you’re not alone. Take the first step toward building an emergency fund by setting up a recurring transfer between your checking and savings accounts on every payday. You can start small with $10, $20, whatever you can afford to spare. Chances are, when it comes out right on payday, you won’t even miss it. Budgeting can also help you see where your money is going and what opportunities you have for reducing spending in certain categories.



Advantages of Direct Deposit

Whether your employer requires you to enroll in direct deposit, or you have a choice in how you receive your paycheck, learn about the benefits of having direct deposit.


  • Fast and convenient: Don’t have to worry about being at work to receive your paycheck, going to the bank to deposit a check, or using remote deposit on your mobile banking app. Funds are deposited directly into your account.
  • Predictable: If you’re trying to stick to a budgeting habit, knowing when you’ll get paid and how much can make it easier to budget.
  • Secure way to receive your money: Direct deposit via ACH offers more security than a physical check. There’s zero risk of the check getting lost in the mail or stolen. Plus, direct deposit safeguards your financial data and account information.
  • Control over where your money goes: You can set up direct deposit for more than one account, including savings accounts, so you have more control over where your money gets deposited. You can allocate a percentage of your paycheck to checking, savings, an emergency fund, or other financial account.
  • Saves time and resources: For employers, direct deposit ensures that employees get paid on time. Businesses also save money on printing, processing, and mailing paper checks.
  • Pay stubs are easily accessible: With direct deposit, your paystubs will be available in your company’s payroll software, organized chronologically. Any time you need to review previous pay stubs, such as when applying for a loan, it’s easier to access them digitally than to find paper copies.



Early Pay with Moody Bank!

Good news! If you have a Moody Bank checking or savings account and have direct deposit, you already have access to your funds up to two days earlier with Early Pay. Not a Moody Bank customer yet? Open a new Checking Account with Moody Bank today! You can also visit any of our Texas bank locations in Austin, Galveston, or Houston to learn more and open a new account in person.

What is Early Pay and How Does It Work? | Blog