In this article, we’ll cover:

• How early direct deposit works
• The benefits of early direct deposit
• Early access to your money with Stash

How does early direct deposit work?

Employers often offer direct deposit because it can help them cut down on the risks and costs of distributing paper checks and even handle payroll more quickly. Additionally, an electronic record is created for each transaction, allowing the sender and receiver to track funds. To set up direct deposit with your employer, you’ll need to provide them with your banking information: 

• Name of your bank
• Bank’s routing number
• Your account number
• Whether you’re using a checking or savings account

From there, you can choose whether you want to deposit 100% of your paycheck into your checking account or split it between your checking and savings accounts. Your employer might provide a form for this information or ask you to bring in a form from your bank.  

So how do you get paid early? Once your employer or benefits provider process payroll, they will notify your bank of your incoming deposit in advance of your actual payday. When they do and your bank receives the deposit, the bank can fund your account immediately so you don’t have to wait for payday to access your money. Your early pay could be available up to two days before your usual payday.

The benefits of getting paid early

64% of Americans live paycheck to paycheck (Pymnts, 2022), which can make the days leading up to payday stressful if money is tight. Whether your pay period is weekly, biweekly, semimonthly, or monthly, having your hard-earned money available a little sooner can help alleviate some financial stress. Early pay means you may have funds available to pay bills, avoid late or overdraft fees, and more easily cover unexpected expenses. Early direct deposit can give you some peace of mind that your money is available for your most pressing needs. And if you’re trying to save money, automatically depositing a portion of your paycheck into your savings account can make it easier to stash those funds away so you don’t accidentally spend them. 

Top benefits of early direct deposit:

• Pay bills on time
• Avoid overdraft fees
• Avoid late payment fees
• Cover unexpected expenses
• Reduce stress when money is tight
• Initiate transfers before the weekend
• Making saving automatic

Get paid early with Stash

If you have a Stash account, you can set up early direct deposit and get paid up to two days earlier.³ You can even start by allocating a just percentage of your paycheck to your Stash banking account, and increase as you choose. Once you get set up, you should receive your first early direct deposit in one to two pay periods, depending on your company’s payroll policies, and the financial institutions involved. 

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How to set up early direct deposit with Stash

There are two convenient ways to set up early direct deposit with the Stash app. Once you log in to your app, you can choose to receive a pre-filled form to give to your employer or get your routing and account numbers manually so you can fill out your employer’s form. Either way, the process is quick, getting you on the road to an earlier paycheck.

Option #1: Email a PDF. Get a pre-filled form you can send to your employer.

1. Login to the Stash app.
2. Tap Bank at the bottom of the screen. 
3. Tap Direct Deposit.
4. Tap Set up Direct Deposit.
5. Tap Email a PDF. 
6. Check your email! We sent you a form that you can give to your employer.
7. Complete the form and give it to your employer.

Option #2: Copy your account information. Get your account and routing numbers manually.

1. Login to the Stash app.
2. Tap Bank at the bottom of the screen. 
3. Tap Direct Deposit.
4. Tap Set up Direct Deposit.
5. Tap Copy Your Account Information to see your account and routing numbers. 
6. Set up direct deposit with your employer using your routing and account numbers.

Ready to get paid early?

You’ve worked hard for your money, so why not get it into your bank account sooner with early direct deposit? Stash offers banking access that helps you take control of your finances: get your paycheck up to two days early, avoid overdraft fees,² automatically save and invest, and earn stock with the Stock-Back® Card.¹ It’s all part of Stash Core, the world-class infrastructure platform powering our banking and personal brokerage accounts that empower people to build wealth for the long term.

Take charge of your finances.

Get paid up to two days early.

Get Started

The post Early Direct Deposit: How You Can Get Paid Early appeared first on Stash Learn.

How can I claim my money? 

• Most people don’t need to do anything. If you filed your 2020 tax returns and signed up for direct deposit of your tax refund, the relief money will be automatically deposited into the bank account you indicated on your tax forms. If you haven’t filed your 2020 taxes yet, the IRS will use information from your 2019 return. You can use the Child Tax Credit Update portal to check your eligibility, unenroll, and make changes to the bank account where you’d like to get payments. You can find the portal here.
• If you haven’t filed your taxes for 2020, are not required to, or don’t plan to, the IRS has also launched a non-filer portal where you can enter your information for payments. (You can access that here.)
• If you do not have a bank account, you will be mailed paper checks.
• Note: the federal government will provide monthly payments for half the money to which they are entitled. Taxpayers will receive the other half as a tax credit when they file their 2021 taxes.

(You can get more details about the child tax credit and payments from the IRS here.)

Who is eligible?

Single people who earn an adjusted gross income (AGI) of $75,000 or less, married couples who earn $150,000 or less, and heads of household who earn $112,500 or less will be eligible to receive the credit. 

The credit begins to phase out for single taxpayers and married couples who earn more, and it ends for single people who earn $200,000 or more annually, and for married couples who make $400,000 or more. 

You can find out about your eligibility by using the IRS’s advance child tax credit tool here.

How much will the payments be?

• $250 per child between six and 17 for a total of $3,000 annually, and $300 per child under the age of six, for a total of $3,600 per year.
• If you have dependents who are 18 years old, or full-time college students age 19 to 24 years old, you may be eligible for a non-refundable $500 annual tax credit per child.

When will payments get sent out?

The IRS says the schedule of monthly payments will be July 15, August 13, September 15, October 15, November 15, and December 15. 

What if you don’t want monthly payments?

Taxpayers can opt out of monthly payments and instead get the money as a year-end tax credit by going to the IRS child tax credit portal. 

Stash customers

If you already signed up to direct deposit your tax refund into your Stash banking account when you filed your 2020 taxes, the relief money should also be deposited into your Stash banking account. If you’re eligible to receive the payment, it will be deposited automatically—you don’t need to do anything further. You can also go to the IRS Child Tax Credit Update portal and provide your Stash banking account and routing number to make sure that your stimulus check is deposited into your account.

Consider saving or investing a portion of the money you may be receiving.¹ To find out what other families are planning to do with their payments, check out our story here.

The post How to Get Your 2021 Child Tax Credit Money appeared first on Stash Learn.

Online banking has revolutionized the way many people manage their finances. Just like traditional brick-and-mortar banks, customers can open checking and savings accounts, pay bills electronically, and transfer funds with an online bank. Many online banks accept mobile check deposits and issue debit cards linked to customers’ online checking accounts. Many offer loans and investment options. Some digital-only banks even accept cash deposits via an ATM. 

And online banking can give its customers tools so that they can take care of their banking strictly through an online platform or mobile app. For the one in five Americans who fully bank online, digital banking has eliminated the need to visit a physical branch, fill out a deposit slip, and wait in line just to deposit a check.  Online banks have made paying bills, following a budget, and saving easier and less error-prone. 

One thing to note: Online-only banks offer only digital access. While online bank customers can typically reach a customer service representative when needed, they won’t be able to walk into a branch and speak with a teller face-to-face. For those who want that flexibility, many traditional banks have online platforms and apps where customers can access their accounts, allowing them to share in the convenience of online banking. 

Convenience is the big appeal

In some ways, consumers see online banking as more convenient than banking with a traditional brick-and-mortar institution. In fact, the introduction of online banking has contributed to a decline in bank branch visits, which in turn has led to the closing of more than 8,000 physical bank branches across the U.S. between 2014 and 2019.

But convenience is just one of the reasons Americans choose to switch from traditional banks with brick-and-mortar locations to online-only banks. Here are some of the other advantages online banks have. 

Higher interest rates

Some online-only banks can offer higher interest rates on deposit accounts than their traditional counterparts.¹ They can do so because they operate with lower overhead, which allows them to bump up the interest earnings on checking, savings, and money market accounts, as well as certificates of deposit and other products. 

With online banks, some customers may see interest rates that are 10 to 20 times higher than the nominal interest rates offered at brick-and-mortar banks. That can make a real difference when you’re working toward important savings goals.

Lower fees

Thanks to their lower operating costs and lack of physical branches, online banks can also sometimes offer reduced fees. Where traditional banks can tack on costs for banking needs such as ATM withdrawals and account maintenance fees, some online banks have eliminated many of those. And when online banks do charge, fees tend to be lower than what their traditional competitors charge. 

Early pay day

Some online banks and financial services companies, including Stash², can offer direct deposit up to 2 days early. This means your paycheck can be available to you when your employer deposits it, which is typically a couple of days before it would show up via traditional banks. Instead of waiting for your money to finally land in your account before you can use it, early direct deposit can allow you to pay bills, make transfers, start earning interest or take out cash sooner. 

Online bill pay

The convenience of paying bills without writing checks or licking envelopes can also attract customers to online banking. Online banking can allow you to pay bills in a few clicks or to set up automatic payments for all sorts of bills like credit card payments, utilities, insurance and recurring subscriptions. The simplicity of online bill pay can save you the chore of keeping track of bills and remembering to pay on time, which means you can avoid late fees. 

Simple tracking

Keeping a close eye on your accounts can be critical to maintaining a budget, catching faulty charges, and ensuring that your finances are on the right track. That’s why easy access to your account can be so important. Online banking platforms typically make viewing your account and transaction details simple online or by app, so you can pull up the information you need anytime—and, if you’ve got your phone on you, anywhere. Many also provide tools for setting and tracking goals, so you can see how you’re doing and adjust your spending to reach your goals. 

Improved recordkeeping

Whether you need to dispute a charge, verify a transaction or collect documentation for taxes, having all of your bank records accessible and searchable online can make the process simple. 

Easy transfers

Traditional banks sometimes make transferring funds to another account—or another bank—cumbersome and expensive. On top of high fees, in some cases you can expect a several-day wait before the money reaches your intended destination. With online-only banks, transfers can be faster—and less expensive.  

Mobile deposits

While direct deposit has already eliminated the need for some trips to brick-and-mortar banks, paper checks still exist. That’s where mobile deposits come in. Online banking apps can allow you to deposit printed checks into your checking or savings account by taking a photo. There doesn’t have to be all the driving to the bank, filling out a deposit slip, or standing in line while you wait for a teller to help you. 

Ability to sync with other banking apps

Many online banking platforms integrate with other financial institutions. That can be important if you use a different app to track your budget, check your retirement savings, or manage a different account at a separate bank, but still want to monitor all your money in one place.

What about cash?

Good to know: One big difference between traditional banks and online banks is that you can’t go to an online bank to cash your paycheck and walk away with physical cash. While the use of cash has decreased in recent years, this difference may be a drawback for people who still rely on cash for some purchases. However, some online banks do use an automated teller machine network, allowing you to use certain ATMs to withdraw or deposit cash. Some online-only banks will even reimburse you for any fees you’re charged when you use another bank’s ATM.

Bank from anywhere

Under the traditional model of brick-and-mortar banks, where an in-person visit was required, banking while managing work, school, travel and home life wasn’t always easy. Customers were limited to traditional business hours to open an account, apply for loans, or transfer funds. And if you weren’t near a bank branch or you were busy during operating  hours, finding a way to take care of banking could be a hassle. 

Online banking can solve that problem by allowing customers to log on and do their banking whenever and wherever it works for them.

 Find out how Stash can help you manage your finances online.

The post Here’s Why You May Want to Bank Online appeared first on Stash Learn.

Direct deposit can be an inexpensive and secure option for banks and consumers who want to get their funds more quickly, a potential win-win for both.

Benefits of direct deposit

There are a number of reasons you might consider using direct deposit:

•  It’s fast. Direct deposit allows money to move between accounts quickly, typically making funds available sooner than with traditional checks.
•  It’s secure. Direct deposit can be a safer alternative to paper checks, which can easily be lost or stolen. Transactions are also easy to track. You can monitor your direct deposit in your online account.
• It’s streamlined. The system reduces paperwork and the number of steps for banks that process direct deposits.  The system can also save time and effort for consumers. Many banks offer perks such as reduced fees or higher interest rates to account holders who set up direct deposit into their accounts.

Traditional uses for direct deposit

You may already receive your paychecks as a direct deposit if you enrolled in direct deposit via your employer’s payroll. More than 86% of U.S. workers receive their pay via direct deposit. Many employers prefer direct deposit because it eliminates paperwork—and the hassles and errors that come with it. The speed of automatic payroll saves a trip to the bank to deposit your paycheck. Banks encourage direct deposit for many of the same reasons: speed, fewer headaches, and easy electronic tracking.

Other uses for direct deposit

Direct deposit is used for a host of other transactions beyond employee payroll. The Internal Revenue Service (IRS) encourages taxpayers to make tax payments and receive refunds electronically. In fact, approximately 80% of all 2018 federal tax refunds were paid electronically. The Social Security Administration has been even more aggressive in promoting direct deposit: a 2013 federal law mandated that, with a few exceptions, the U.S. Treasury pay all Social Security and SSI benefits electronically.

Insurance providers and the U.S. Department of Veterans Affairs are among other institutions that have adopted direct deposit to streamline payouts to beneficiaries. Most states have instituted systems for making child support payments via direct deposit.

Like direct deposit, the internet has opened the door to a new class of electronic transfer service providers. PayPal, Venmo, and Google Wallet are among the best-known services that allow individuals and businesses to make and receive electronic payments. Users provide their routing and account information and can move funds to and from traditional bank accounts, often instantaneously.

Who is eligible to use direct deposit?

Anyone with a checking or savings account at a U.S. bank can use the direct deposit system. Both types of accounts can receive a direct deposit, and most banks will allow you to automatically split a deposit among multiple accounts. Brokerage accounts, or accounts through which you can make investments, may also accept an electronic transfer; but brokerage firms will sometimes use an intermediary bank to process them.

How to set up direct deposit to receive payments

To set up direct deposit of your paycheck, your employer will likely give you a set of forms that ask for your bank’s routing number and your account number. The routing number is a nine-digit number that you can find in the lower left-hand corner of your personal checks. If you don’t use personal checks, you can contact your bank directly to ask for its routing number. Your account number is immediately to the right on a check. You may also be asked to supply your bank’s mailing address. You’ll also have to provide your employer with a voided personal check to ensure that they receive all the correct details.

When setting up direct deposit into a brokerage account that uses a third-party bank, you’ll likely have to ask the broker for that bank’s routing information and the account number at that bank. This account number may not match your brokerage account number since your broker may be using the bank account as a temporary holding account. Not all brokerage accounts accept direct deposit so be sure to look into the limitations of your specific account.

Once you provide these numbers to your employer, they may set up a test deposit of a nominal amount—usually a few cents—to confirm that they have your correct banking information. Your first electronic deposit may be delayed until you verify your information. 

Making payments through direct deposit and electronic transfers

Direct deposit and electronic transfers can be a good way to send money to a friend or pay taxes or bills. Services such as PayPal and Venmo allow you to make payments to other individuals without writing a check or getting cash from the bank. In fact, many states, such as California and Massachusetts, require electronic payment for some taxpayers.

Electronic transfers have also streamlined payments for services such as credit cards and utilities. You can set these payments up to occur automatically on a certain day of the month or elect to review your bill before authorizing a transfer. Either way, you avoid the hassle of writing and mailing a check.

How long does direct deposit take?

In many cases, you will have access to direct deposits immediately, and banks must make them available by the next business day after the business day that the bank received the money. Electronic deposits often require no human oversight and are automatically validated by your bank, so there is no need to wait a couple of days for a check to clear. In rare cases, an employer may choose to use an electronic check, which is a type of Automated Clearing House (ACH) transaction. E-check funds may not be available for several days.

Direct deposit is great but getting your money earlier is even better. With Stash, you can access direct deposit funds up to two days before they arrive with Stash’s banking’s Early Direct Deposit feature.³ Remember that in many cases, an employer or other benefit provider will notify your bank of a pending payment before it actually arrives. And money always posts as soon as it’s received. With Stash banking, you can also divvy up your paycheck into different partitions¹³ so that you can stay on top of your bills and expenses. To learn more about direct deposit and how to take advantage of Stash banking’s Early Direct Deposit service, visit Stash Banking.

The post What is Direct Deposit? appeared first on Stash Learn.

We’d like to explain. There are basically two ways to move money from your external bank account into your Stash banking account. One way is through the Stash app, the other way is through your external bank’s app/website.

Read on to find out more.

Quickest method

From your external bank account:

In your bank’s app/website, you’ll find a page to make a transfer. You’ll need to manually enter your Stash banking account and routing numbers (you can find that info in your debit settings: “account and routing numbers”). The bank then sends the money to Stash electronically and it should arrive in one to two business days (depending on the bank and time of day). FYI, about a third of users prefer this method.

Longer method

From the Stash app:

If you make a transfer through the Stash app, Stash sends an electronic request to your external bank. It takes two to four business days to get confirmation from your other bank and move the money. It’s crazy that it takes this long in the 21st century, and lots of companies are working to change that, but it isn’t quite here yet.

How Stash is making money transfers faster

To speed things up, we advance money to the majority of banking customers before we receive the confirmation from the other bank that the money is there. If you make the transfer before 1 p.m. EST, we’ll usually get you the money the next business day. We’re working hard to make these transfers even better.

What can you do to get faster money?

It’s likely that our data science models don’t have enough information about you yet. To change that, make a couple investments on Stash and give it a little time to build up your history. Once we have the necessary information, we can make a more informed decision and you may then be able to get your transfers faster.

There are also lots of other ways to get money into your Stash account. These include: cash deposit at a participating retailer, transfer from Venmo or Square cash—and the simplest way to get money into your account is direct deposit. With direct deposit, the money comes straight from your employer and you may be able to get your pay up to two days early (four days early for government benefits).

How much money can you move?

We can accept up to $50,000 when you make a transfer from your external account. It’s the same story for direct deposit. You can also make transfers from the Stash app.

Stash wants to be your financial partner for the long haul. And we want to help you simplify your financial life and consolidate your investing, saving, and spending into Stash.

The post Faster Ways to Move Money Into Your Stash Banking Account appeared first on Stash Learn.

And the ability to get our paychecks deposited directly into our bank accounts with direct deposit—even a day or two early, in some cases—makes life a lot more convenient.

Fun fact:

Eighty-two percent of U.S. workers get paid via direct deposit. The government uses it, too. Nearly 99% of Social Security recipients get their checks through direct deposit, for example, as do 80% of taxpayers receiving refunds from the IRS.

Read more: Direct Deposit: What it is, And How it Works

Direct deposit is a proven, efficient method for moving money. But despite that, some people still hold out, opting instead to deposit paper checks, which can eat up time and patience.

If you’re not convinced that you should set up direct deposit, here are some of the reasons that you should consider setting up direct deposit with your employer.

1. Direct deposit is fast, easy, and efficient.

Getting paid via direct deposit is probably the easiest, most efficient way to move money around. The banks are connected, there’s less time lag, and you don’t have to do anything other than checking your balance to make sure your account balance contains the expected amount.

That means no standing in line at the bank and no driving around looking for ATMs that allow for check deposits.

2. Direct deposit is safe.

Having a pocket full of cash is great feeling—except for worries that you’ll lose it, or that it’ll be stolen. The same goes for a physical check, which can get misplaced or destroyed.

Direct deposit eliminates the need to print a physical check, and reduces the risk that your money could be lost or stolen. Payments can also be made or received much faster, and an electronic record is created for transactions, allowing all parties involved to track funds.

3. Direct deposit can help you stay on top of bills.

You may not have trouble paying your bills on time, but many people do. In fact, as much as 25% of U.S. adults aren’t able to make timely payments, according to industry data.

If you fall into that bucket, there’s good news: Research shows that 73% of workers who are paid via direct deposit say that it helps them pay their bills on time, in contrast to 46% who are paid with physical checks.

4. Direct deposit can help you manage your money.

When you set up direct deposit, you can dictate where you want your deposits to go. For example, if you want to deposit half of your paycheck into a primary checking account and the other half into a savings account, you can.

This can be helpful for people who have trouble saving or properly managing their money. If a portion of your paycheck is saved automatically, you may not feel the “pain” of making the transfer yourself.

After a while, you might even forget that you’re building savings and focus only on managing the portion that hits your checking account.

5. You could get your pay earlier.

When you set up direct deposit with some financial institutions, you could get paid up to two days early.

Sound good? Sign up for Stash, get a bank account with direct deposit, and you might be able to pay your rent while your coworkers field angry calls from their landlords as they wait for their checks to clear.

Setting up direct deposit with Stash

Stash customers who wish to set up direct deposit with their employers in order to receive their paychecks generally have to fill out a form that gives their employers their banking information. That includes account information, such as the name of your bank and its routing number, and your account number and type,as well as whether it’s a savings or checking account. (You’ll find your Stash banking account information in your bank account settings.)

Stash can help you set up direct deposit quickly and easily with its technology. Simply answer a few short questions using a direct deposit form available here, or on the homepage banking screen in the app. We’ll send the information directly to your employer, or to your employer’s payroll provider. (You can also fill out the form electronically,  download it, and give it to your employer’s payroll department in person.)

What’s more, if you don’t feel like putting your entire paycheck into your Stash banking account, you can choose how much you want to deposit. Simply choose a percentage or a dollar amount, and we’ll take care of the rest.

You should receive your first direct deposit in one to two pay periods, depending on your company’s payroll policies, and the financial institutions involved. You can always reach to your employer or payroll provider for real-time updates.

The post 5 Reasons You Need to Set Up Direct Deposit Now appeared first on Stash Learn.

That’s why the banking gods and goddesses created direct deposit.

What is direct deposit?

Direct deposit is a direct transfer from one bank account to another. Typically, direct deposit involves an employer paying an employee via (you got it) direct deposit, forgoing the need for a physical paper paycheck.

Outside of your paycheck, direct deposit can also be used in other ways. The IRS, for example, can use direct deposit to transfer tax refunds to filers’ bank accounts.

Many organizations use direct deposit as it eliminates the need to print a physical check, and reduces risk in that a physical check can be lost or stolen in the mail. Payments can also be made or received much faster, and an electronic record is created for transactions, allowing all parties involved to track funds.

How do you set up direct deposit?

Employees who wish to set up direct deposit with their employers in order to receive their paychecks generally have to give the employers their banking information. That includes the name of your bank, the bank’s routing number, account numbers, account types (saving or checking), etc.

From there, the process takes anywhere from a few days to a couple of weeks—it largely depends on the institutions involved.

Some banks allow for employees to receive their paychecks up to two days early (such as Early Direct Deposit here at Stash)

Direct deposit with Stash

Stash customers who want to set up direct deposit with their employers in order to receive their paychecks generally have to fill out a form that gives their employers their banking information. That includes some basic data, such as the name of your bank and its routing number, and your account number and type, such as whether it’s a savings or checkings account. (You’ll find your Stash banking account information in your bank account settings.)

Stash can help you set up direct deposit quickly and easily with its technology. Simply answer a few short questions using an electronic form in the app. We’ll send the information directly to your employer, or to your employer’s payroll provider.

What’s more, if you don’t feel like putting your entire paycheck into your Stash banking account, you can choose how much you want to deposit. Simply choose a percentage or a dollar amount, and we’ll take care of the rest.

You should receive your first direct deposit in one to two pay periods, depending on your company’s payroll policies, and the financial institutions involved.  You can always reach to your employer or payroll provider for real-time updates.

Get paid two days early with direct deposit³

Early Direct Deposit from Stash can help you take charge of your financial life by giving you access to your money up to two days earlier than normal.

The post Everything You Ever Wanted to Know About Direct Deposit appeared first on Stash Learn.