A lot of people wonder about direct deposit times and what time does direct deposit hit at major banks. This is understandable right now in the economy because people need to know when they will be paid. They need to know the time checks are deposited into their bank account.
For somebody starting a new job somewhere, this is probably the biggest question they may ask when becoming a new employee of a company somewhere.
- Most direct deposit times for banks and credit unions occur between 12:00 AM and 6:00 AM.
However, there are some specific direct deposit times based on the type of bank and also employer. I have put together a direct deposit times list for some of the largest commercial banks and also large employers including the federal government down below.
Learning about bank deposit times will help you know what time money is available in your account.
What is Direct Deposit?
Direct deposit is being paid electronically from one bank account to another instead of by a paper check. Most employers require their employees to be signed up for direct deposit because it saves the companies a lot of money on payroll processing.
Your employer’s bank and your bank where your account is located transfer money through the Automated Clearing House Network to make the electronic transfer of money.
According to the National Automated Clearing House Association, each year it moves
more than 41 trillion and 24 billion electronic financial transactions.National Automated Clearing House Association
Advantages of Direct Deposit
Direct deposits offers a lot of advantages for employees and employers.
For employees, they don’t have to wait for a paper check to be mailed or handed out at work, especially if that employees is sick. If you don’t have an account, you will have to decide on a checking vs. savings account to see which is right for you.
Additionally, since employers are using ACH transfers, there are certain regulations and agreements regarding what time direct deposits go through and post to an account.
Another advantage for employees is they also have a calendar from their employer with direct deposit times stating what time their direct deposits will go through.
Some of the advantages of direct deposits for employers would be that they no longer have to purchase check paper and physically produce a check.
There is a tremendous time savings by employers using ACH transfers as well.
Once the direct deposit goes through and posts to your account, you have access to that money. You will have to set up an account in order for direct deposit. If you have bad banking history, there are banks that don’t use Chexsystems that offer checking and savings accounts for direct deposit.
What Time Does Direct Deposit Go Through?
The time frame for electronic deposits depends a lot on the agreement with your bank. It also depends on the agreement with your bank and the Automated Clearing House. There are a lot of different factors that affect the time the deposit goes through.
For example, the ACH requires that banks post their deposits within two days. Some transactions are required to post within a day.
However, there can be delays sometimes on the part of the banks.
The main reason for this is because of the bank’s reserve obligation. Banks have to make sure they have enough reserves on hand to cover the deposits of its account holders.
A bank’s reserve doesn’t have to be 100%, but there is a reserve ratio that banks do have to meet.
This situation won’t be common for small $1000 deposits, but rather for larger multi-million dollar deposits.
When a significant deposit is made such as $2,000,000, a bank has to make sure that the bank has enough cash on hand to meet the bank reserve ratio.
With larger deposits, comes more money necessary from the bank to meet its reserve.
What Time Does Direct Deposit Post For Payroll
However, from an employer standpoint, all payroll has to be sent electronically to the federal reserve system. For payroll, employers have to be sure they submit the payroll on the right day.
- There are a lot of payroll services who have payroll software that will handle this but there has to be enough lead time for the payroll to transfer to employees on payday. The lead time is the time span between when employees receive their direct deposits and the day that employers submit the payroll.
- Each payroll software and direct deposit service have different lead times when it comes to submission. Some will need payroll anywhere from 1 to 4 business days before payday.
- Once the payroll service or software has transferred the earnings to financial institutions, it’s the individual bank that actually determines when direct deposit will be received.
- Each bank has their own direct deposit times that determine when they update their customer accounts and pull this money from financial institutions.
If a payroll software service is used, most of these issues will be handled so business owners can focus on running their business and not on payroll related issues.
Other Things That Affect Deposit Time Frame
There are other issues that can affect direct deposit times and what time deposits go through. Some of those items are listed below.
- Direct deposits can only occur when the Federal Reserve System and ACH are open which is normally during business days only.
- Holidays also affect direct deposit and when employees can receive pay and what time direct deposit goes through.
- When the bank is closed for a holiday, direct deposit should be submitted a day earlier so that employees receive their wages at the normal time.
- If you run payroll and pay your employees with payroll software, you might be notified by the payroll service to submit your payroll earlier than normal.
What Time Does Direct Deposit Hit Your Bank Account for Large Banks?
The advantages and disadvantages of online banking affect direct deposits. Deposit times and time frames will vary for different banks. Availability of your funds also depends on when banks update their accounts.
These updates are done usually during the middle of the night when banks are closed.
Direct deposits are available once these banks update. Some banks will update their accounts for deposits at 12AM. Other banks might update at 3AM for deposits.
Times for deposits do vary from bank to bank based on when their accounts are updated. In general direct deposit will hit your bank account between midnight and 3am for most banking institutions.
Listed below are the times direct deposit times for commercial banks.
Suntrust Direct Deposit Time
- Suntrust (now Truist) posts direct deposits the next business day if the deposit was made after 9pm with Suntrust mobile deposits. This does not include “same-day ACH” direct deposit transfers.
Chase Direct Deposit Time
- Deposit time frame for Chase account holders is between 3AM and 5AM.
Bank of America Direct Deposit Time
- Deposit time frame for BofA account holders is between 4AM and 6AM. Bank of America fund availability in your account should be start of that business day.
Wells Fargo Direct Deposit Time
- Direct deposits for Wells Fargo account holders occur between 12AM and 3AM on your pay day at Wells Fargo Bank. The direct deposit will hit your account between midnight and be available in your account for withdrawal the morning of the next business day.
Fifth Third Bank
- Deposit time for Fifth Third Accounts is between 12AM and 3AM.
Regions Bank Accounts
- Regions accounts update between 12AM and 3AM.
Citizens Bank Deposit Time
- Updated accounts along with deposits will post between 3AM and 6AM.
US Bancorp Bank Accounts
- Deposit will go through between 12AM and 3AM.
- Citigroup updates their deposit accounts between 2AM and 4AM.
Goldman Sachs Bank
- Deposits go through between 1AM and 4AM.
Central National Bank Accounts
- Central National updates accounts between 1AM and 4AM.
TD Bank Accounts
- Deposits go through between 12AM and 3AM.
Metlife Bank Accounts
- Post occur between 2AM and 5AM.
PNC Financial Deposit Accounts
- Accounts are updated between 12AM and 3AM.
Morgan Stanley Bank Accounts
- Accounts update between 12AM and 2Am.
First American Bank
- Bank accounts update between 2AM and 5AM.
- Deposits post between 12Am and 2AM.
- Accounts update between 1AM and 4AM.
Northern Trust Bank Accounts
- Accounts are updated between 12AM and 3AM.
State Street Bank Accounts
- Updates occur between 2AM and 5AM.
Bank of New York
- Deposits will post between 2AM and 5AM.
UnionBanCal Bank Accounts
- Deposits go through between 2AM and 5AM.
Other Direct Deposit Times for Federal Government
A lot of people ask questions on deposit times relating to agencies and operations of the federal government. Some of those institutions include, SSI, the IRS, and tax refunds.
A lot of citizens in the county receive payments from these institutions. Below are the direct deposit times that relate.
What time does government post deposits?
- Most banks update their accounts sometime between 12AM and 5AM. All banks have specific times and time frames when they update their customers accounts. You can expect your government direct deposit to post during this time and be available once your bank opens.
What time does direct deposit hit Navy Federal?
- Deposit times for the Navy Federal Credit Union are between 12AM and 6AM. Most direct deposits available once NFCU opens.
What is the SSI time of day deposits post?
- SSI benefits are paid on specific days. Most banks update their customer accounts and deposit times starting at 12AM so you can expect your SSI to be available at 12:01AM on the day of payment.
What is the direct deposit time for the IRS and tax refunds?
- When it comes to tax refunds, the IRS states that when electing to file electronically and select direct deposit for your IRS tax refund, 90% of filers receive their refund within 21 days.
Direct Deposits for Banks Summary
As you can see, direct deposit times vary based on banks and institutions. Even federal government agencies and SSI direct deposits post at different times as well.
However, through payroll software and payroll services, the time it takes for electronic deposits to go through is reduced. As an employee, you can be assured to receive your deposit on your pay date.
Once your direct deposit hits your bank account, you can spend the money. Through the bank direct deposit times listed above, you will be able to plan appropriately. Knowing when your deposit posts can save a person a lot of financial stress and anxiety.