Wells Fargo alternatives to Direct Deposit Advance
Wells Fargo’s Direct Deposit Advance was a deposit-advance loan that could pull repayment from a future direct deposit - so it was in effect a payday type loan. The bank discontinued the program in early 2014, after broad scrutiny of deposit-advance products.
If someone used Direct Deposit Advance or any similar payday product, the underlying need was usually short-term cash flow between paydays. The most practical approach today is to reduce the “timing gap” first, then reduce overdraft damage, and only then consider borrowing or some type of alternative loan if a stable payment is clearly affordable. Below are the main Wells Fargo alternative products and features that someone should use now.
If you need money while waiting on the next payday
If you need the money while you wait on the next check (aka timing problems), the closest Wells Fargo replacement is Early Pay Day. As part of this program, Wells Fargo may make certain direct deposits available one to two business days early, but early availability is not guaranteed and can vary depending on when the payer transmits payroll information with more information on this option here: https://www.wellsfargo.com/checking/early-pay-day/
For a household that is typically short on funds, and needs immediate help to pay bills, for only a day or two before payday, Early Pay Day can prevent an overdraft or late payment without adding debt. If interested, there are even ways to get paid daily for work. The limitation is important in that you should not schedule bills under the assumption the deposit will always arrive early, because Wells Fargo states it may vary by pay period and may stop without advance notice.
If you are concerned about overdrafts on your Wells Fargo account
If you are concerned about overdrafts, Wells Fargo’s Extra Day Grace Period can matter more than any loan. Wells Fargo does provide an extra business day, as the bank notes that if your account is overdrawn, you can avoid overdraft fees if your available balance is positive by 11:59 PM Eastern Time the next business day. https://www.wellsfargo.com/checking/extra-day-grace-period/. However if you do not cover the overdraft by that deadline, Wells Fargo states a $35 overdraft fee may be charged for each overdraft item, up to a maximum of three.
- This feature is designed for the exact scenario many Direct Deposit Advance users faced. As many people that use that past Wells Fargo offering would face a shortfall that can be corrected quickly with a deposit, transfer, or other same-day funding source.
The next Wells Fargo option, which is a great alternative to Direct Deposit Advance, is Overdraft Protection, which can move money from a backup account when your checking account does not have enough funds. As an example of how this works, you can link up to two eligible Wells Fargo accounts (one savings account and one credit account) to a Wells Fargo checking account for overdraft protection, and if you link two accounts you can choose which one is used first. https://www.wellsfargo.com/checking/overdraft-services/.
- Therefore, if you have a savings account with even a small cushion, linking savings first can be a safer backstop than repeatedly paying overdraft fees. If the backup is a credit account, you are moving from “fees” to “borrowing,” which can still become expensive if it happens frequently.
If the ongoing problem is overdraft fees themselves, Wells Fargo’s Clear Access Banking account is worth understanding. Wells Fargo Clear Access Banking is a checkless account designed for customers who want help managing money without getting charged overdraft fees. https://www.wellsfargo.com/checking/clear-access-banking/.
Wells Loans can be used instead of a Direct Deposit Advance
If the need is larger than a timing issue which may be solved by overdraft protection or payday issue, such you need money to pay for a car repair, a medical bill, or catching up after a one-time expense, a Wells Fargo personal loan may be a better fit than repeated overdrafts or short-term advances. Note that to be eligible for a personal loan, you are required to have an open Wells Fargo account for at least 12 months.
A personal loan from Wells Fargo only makes sense when the payment fits the budget every month, meaning you can pay the interest for the loan and cover the future principal. Many of these may be unsecured personal loans too. If a fixed payment would cause overdrafts, it will usually make the situation worse.
When borrowing is truly necessary, a structured installment payment loan (website https://www.wellsfargo.com/personal-loans/) is generally a better option than a repeated short-term advance. A loan from Wells can also be an option if you are consolidating higher-cost balances into a fixed plan. It is usually a poor choice if income is uncertain, because a fixed payment can trigger overdrafts and late fees if you are already struggling.
There are options that replaced the Direct Deposit Advance
For many people who previously relied on Direct Deposit Advance from Wells Fargo, the most effective change is not borrowing money at all and just getting your finances in order. Doing things like adjusting bill due dates so payments fall after payday, turning off automatic payments that trigger overdrafts, and using grace periods can reduce the need for a loan or other forms of short-term cash entirely. A small timing change can prevent a cycle of fees that once made deposit-advance loans seem necessary.
While Direct Deposit Advance is gone, many people still need short term access to funds. Wells Fargo customers now have to rely on earlier access to pay, grace periods, overdraft protection, or structured loans instead of payday-style advances. The best option for you depends on whether the problem is timing, recurring overdrafts, or a larger one-time expense.
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