Paycheck Chronicles

USAA's Timing of Military Direct Deposits

I’m not a banker at USAA, but I know a few. So, when Kate asked me to write a short post on how and why USAA Bank handles military paydays like we do, I reached out and talked USAA Bank product management Director Matt Doddato for some help and here’s what I learned:

Our goal: A business day before pay date. At USAA Bank, if we know what’s coming, we make every attempt to make our members’ direct deposit funds available the business day before the actual pay date. That means you can build your budget, spending plans and expectations knowing that if the pay day is on the 15th, your paycheck will land in your account on the 14th. Of course, if the 15th is on a Monday, then your paycheck will be available on the 12th. Doddato noted, “Our members’ feedback is critical and they’ve told us they appreciate our consistent approach.”

The direct deposit notification is not the actual direct deposit pay date. Apparently, DFAS notifies financial institutions a few days in advance that a direct deposit for a specific amount is on the way. According to Doddato, “this can cause some confusion as the date DFAS notifies us of the payment is not when they deliver the money.” USAA Bank receives the money on the actual military pay date. Again, USAA Bank works to make the money available to you the day before DFAS transfers the money to USAA Bank.

USAA makes funds available throughout the day. I was also curious about the nuances as to what time of day the money becomes available on the business day before the pay date. Doddato explained, “USAA Bank actually runs cycles throughout the day to identify and make available direct deposit funds.” He also noted, “You may see the money at different times of the business day before payday, but when you see it you can spend it.”

Many thanks to JJ for gathering this information.  I get questions about USAA paydays ALL. THE. TIME.

And now we have answers!

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