TD Bank Provides Customers Faster Access to Wages With ‘Early Pay’

TD Bank

TD Bank introduced a tool that lets customers get direct deposits two days early.

TD Early Pay, announced in a Tuesday (March 26) press release, is part of a pair of new offerings from the bank that also includes its TD Complete Checking product.

“As customer needs are continually evolving, we are delivering an insights-driven banking experience, which provides simplified banking options, and quicker access to funds,” Courtney Mitchell, head of consumer deposit products and payments at TD, said in the release.

TD Early Pay is available now for free for all checking and savings account customers, according to the release. It works for a variety of transaction types, including paychecks, tax refunds, government benefits, military pay and pensions.

TD Complete Checking, meanwhile, offers customers “an enhanced, streamlined everyday banking option” and includes a free linked savings account, as well as free paper statements and basic checks for customers aged 60 and above, and no monthly maintenance fee and no fees for using non-TD bank ATMs for young adults between the ages of 17 and 23.

“Gone are the days when employees were content with waiting for the standard pay cycle to receive their hard-earned wages,” PYMNTS wrote last week. “Today’s workforce, whether grappling with the uncertainties of living paycheck to paycheck or navigating the gig economy, craves more flexibility and immediate access to their earnings, especially in times of emergencies.”

This demand by workers for more flexibility with their pay has led to the rise of solutions like early wage access, also known as early, instant or on-demand pay.

The trend is mirrored by findings from PYMNTS Intelligence, which showed an increasing preference among Americans for real-time income/earnings payouts. More than three-quarters of U.S. workers said they prefer instant payouts, with 81% of freelancers, contractors and consultants showing the highest inclination.

“Even more striking is the willingness among independent professionals to pay for the convenience of receiving disbursements through instant payment rails, surpassing other individual categories in terms of enthusiasm for this option,” PYMNTS wrote last week.

The data, backed by separate PYMNTS Intelligence research, showcased the growing demand for more immediate access to earnings, especially among gig workers, who often require more frequent pay access than the traditional twice-monthly payroll.