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We're the Consumer Financial Protection Bureau (CFPB), a U.S. government agency that makes sure banks, lenders, and other financial companies treat you fairly.

Learn how the CFPB can help you

My bank offers a direct deposit advance or checking account advance. What is this?

Answer:

Deposit or checking account advances let you borrow up to a certain amount of money (often $500) from your next direct deposit.

However, this money, along with fees, will usually be automatically deducted from your next direct deposit when it goes into your account.

The fees attached to deposit or checking account advances can be high. In addition, you will have less money from your next direct deposit, because the bank will remove both the amount of money advanced and all the related fees. While this might be cheaper than incurring an overdraft fee, consider whether you will be able to meet your other obligations if your direct deposit is reduced, and whether other, lower-cost options are available.

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The content on this page provides general consumer information. It is not legal advice or regulatory guidance. The CFPB updates this information periodically. This information may include links or references to third-party resources or content. We do not endorse the third-party or guarantee the accuracy of this third-party information. There may be other resources that also serve your needs.

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