Paid Early (Saturday morning) this month.

[broncovet]

I was happily suprised!  I did not expect to be paid until Monday.  I found out, "when" we get paid has a lot to do with which bank we use.  

I have already switched my Social security to "my other bank", and poof, it came on Tuesday, not Wednesday, like it always used to come.  

But, Im nervous about changing VA deposit bank's.  Why?  Because if someone (including ME!) messes something up my life will be miserable for months or years..if I know how VA works.  

When I changed my bank for social security, they sent me a letter informing me of the change about 3 months early.  While it did not happen fast, it was safe and secure.  

 

Did others get paid Saturday? (Today)  Im curious.  

[broncovet]

Wow!  Thursday!  Thanks for the heads up.  I already have a USAA account, I just rarely use it.  It may be worth switching to get it THAT early.  

I know why banks do that!  

Its about money.   Theirs.  You see, they can loan out money daily.  They can earn interest for 3 days.  If you had 1000 customers, each depositing 4000 dollars, for 3 days, that's $4,000,000. (4 million)

times 5% (at least..that is the money market rate altho they often dont pay you that).   Thats worth about $1643 for the bank to delay the money to you and earn the interest on it themselves.  If its a big bank like chase, Its in the millions of dollars.  

[Sgt. Wilky]

I have USAA and my deposit came on Thursday, but I've been with them too for about 22 years. I've switched my VA deposit a couple times and not have had any problems. Enter your information carefully, and don't close any accounts until you've had your VA deposit coming in the new account for at least a couple months.

Semper Fi,

Sgt. Wilky

[Lemuel]

My VA check at Pentagon Federal Credit Union always comes at least a couple of days early.  Tried to get my SS to come there but SS kept trying to send it to a wrong account number.  Finally sent it back to Citi Bank and got the back payments.  So yes, things can happen when you try to change direct deposit accounts.

I like the way it is now because savings at Citi Bank are higher than at PenFed.  But PenFed has lower interest rates on borrowing and higher interest rates on Certificates of Deposit.

[pacmanx1]

If my memory is correct, banks get printouts daily of upcoming deposits and recurring deposits can be at least 3-5 days out before they're posted or actual release date, but they do not tell their customers this information. My credit union will normally post my deposits a few days early, but they have been doing that for about a year or so now.

Banks just don’t want their customers to switch their direct deposit owing them money. I have seen banks reopen a closed account to collect the money that an individual had closed just to get their money back.  Since the individual had access to the rest of the funds, my hands were tied, and I could not request the bank to return the original amount deposited.

On average a lost ((EFT) what we called it back in my day) deposit can take anywhere between 30 to 120 days to be returned and redeposited, and I have seen some take even longer. Big headed financial advisors say that the average person should have at least 3 to 6 months saved up just in case of an emergency (not to lend it to someone that will never pay you back) to cover any financial hardship but this/that is really hard to do if you are living on paycheck to paycheck.

So, the bottom line is to try your best to not spend all your retroactive pay. Because I lost everything and was homeless, my retro pay was gone long before I ever got it. Doing the right thing of paying all your debts feels good but it leaves your bank account empty like it was never there.

Edited March 31 by pacmanx1

[relatively happy camper]

As mentioned above, the banks get the money earlier and of course use it for a few days interest free, for them.  I believe all government deposits are made a few days earlier, than we receive actually the benefit.  VA funds used to be deposited on the 28th.  Some banks do deposit them in your accts early but remember should you die the money is not earned until the 1st and the VA can take it right back, out of the acct and they will.  Your spouse could lose that money, when they are planning to use it.  It's best to change it to another bank/credit union, as soon as it's received in your acct.  Your spouse could eventually get it back but there could be a delay.  jmo