If you're paid biweekly, July is one of two months this year when you'll probably receive three paychecks instead of the usual two. That's because the 52 weeks in a year can't be equally divided across the 12 months.
For workers whose first Friday paycheck was on Jan. 2, 2026, the three-paycheck months are January and July. (If your first deposit was Friday, Jan. 9, the three-paycheck months are May and October 2026.)
That additional deposit can feel like "extra" money if you budget monthly, but you're really just getting another regular paycheck early.
Instead of letting it blend into everyday spending, here's how you can use those funds to get ahead on your financial goals.
How to make the most of a 3-paycheck month
Pay off high-interest debts
Our standard advice about any windfall or unexpected funds still stands: Use it to pay down high-interest debt like credit card bills before you do anything else. Most card issuers compound interest daily, so carrying a balance month after month can easily lead to financial hardship.
If you have money you didn't budget for this month, you could apply for a balance transfer credit card with a 0% APR introductory period and use the cash to pay off the principal on your cards without facing the financial headwinds of accruing interest.
Wells Fargo Reflect® Card and Citi Diamond Preferred both offer cardholders up to 21 months, or nearly two years, to pay off their balances interest-free.
Make a plan for how you'll pay off the balance before the intro period is up (be sure to include balance transfer fees) and don't give in to the temptation to charge more purchases.
The Wells Fargo Reflect® Card can help you save on interest charges thanks to its extra generous intro-APR offer on purchases and qualifying balance transfers.
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Apply Now to take advantage of this offer and learn more about product features, terms and conditions.
- 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers. 17.49%, 23.99%, or 28.24% variable APR thereafter; balance transfers made within 120 days qualify for the intro rate, BT fee of 5%, min: $5.
- $0 annual fee.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
- Through My Wells Fargo Deals, you can get access to personalized deals from a variety of merchants. It's an easy way to earn cash back as an account credit when you shop, dine, or enjoy an experience simply by using an eligible Wells Fargo credit card.
Balance transfer fee
5%, min: $5
Foreign transaction fee
3%
The Citi® Diamond Preferred® Card is one of the best balance transfer credit cards and also has a generous intro APR offer.
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- 0% Intro APR on balance transfers for 21 months and on purchases for 12 months from date of account opening. After that the variable APR will be 16.49% - 27.24%, based on your creditworthiness. Balance transfers must be completed within 4 months of account opening.
- There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
- No Annual Fee - our low intro rates and all the benefits don't come with a yearly charge.
- Buy now and pay later. Split your payment for eligible purchases of $75 or more into a fixed payment with Citi® Flex Pay.
- Get free access to your FICO® Score online.
Balance transfer fee
There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
Foreign transaction fee
3%
Strengthen your emergency fund
The current high-interest-rate environment isn't good news for homebuyers or people looking for a car loan, but it means higher APYs for savings vehicles.
Putting an extra paycheck in a high-yield savings account or a CD for a year probably won't earn you enough to remodel your house or take that vacation you've been putting off. But it can fatten your emergency fund. (Experts recommend keeping at least three to six months of essential expenses in savings.)
Western Alliance Bank is one of our top picks for HYSAs, with a competitive APY and no cap or monthly fees. Your bonus paycheck should be more than enough to meet the $1 minimum opening deposit requirement.
Western Alliance Bank High-Yield Savings Account
Annual Percentage Yield (APY)
3.80% APY
Minimum balance
$1 minimum deposit
Monthly fee
None
Maximum transactions
Up to 6 transactions each month
Excessive transactions fee
The bank may charge fees for non-sufficient funds
Overdraft fee
No overdraft fee
Offer checking account?
No
Offer ATM card?
No
Terms apply.
If you want an APY that won't fluctuate — and like not be tempted to touch your money — a CD is another smart place to park that extra paycheck.
Bread Savings™ (formerly Comenity Direct) CDs
Annual Percentage Yield (APY)
From 3.70% to 4.00% APY
Terms
From 6 months to 5 years
Minimum balance
$1,500 minimum deposit
Monthly fee
None
Early withdrawal penalty fee
Early withdrawal penalty applies. For terms shorter than 1 year, the penalty is 90 days simple interest. For terms 12 months to 3 years, the penalty is 180 days simple interest. For terms 4 years and up, the penalty is 365 days simple interest.
Terms apply.
Online institution Bread Savings™ focuses exclusively on high-yield deposit products and offers one of the highest APYs on the market for one-year CDs. If you're not flush with savings, one year is a nice middle ground between liquidity and return.
Boost your retirement nest egg
If you're not carrying high-interest debt and already have a healthy amount in savings, you may be able to direct that extra paycheck into your 401(k).
To do that, you'll need to temporarily increase the percentage you're contributing. For example, if you earn $80,000 a year and typically contribute 6% to your 401(k) — or about $185 per biweekly paycheck — you could increase your contribution to 75% for that extra pay period.
That would result in about $2,300 being contributed to your 401(k), or roughly $2,123 more than you would normally contribute.
Keep in mind that your employer may cap employee contribution elections at a lower percentage. This strategy also may not make sense if you typically hit the annual 401(k) limits set by the IRS. And don't forget to reset your contribution levels afterward, or you'll be in for a big surprise in August.
If you're eligible and haven't reached the annual contribution limit, you could also direct all or some of the extra paycheck directly to an IRA.
If you're new to IRAs, Fidelity offers fractional shares of more than 7,000 U.S. stocks and ETFs starting at just $1, so beginners can get their feet wet without risking too much. Fidelity offers a healthy interest rate on uninvested cash and several index funds with no expense ratios.
Fidelity Investments
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No minimum to open a Fidelity Go® account, but minimum $10 balance according to the investment strategy chosen
Fees
Fees may vary depending on the investment vehicle selected. Zero commission fees for stock, ETF, options trades and some mutual funds; zero transaction fees for over 3,400 mutual funds; $0.65 per options contract. Fidelity Go® has no advisory fees for balances under $25,000 (0.35% per year for balances of $25,000 and over and this includes access to unlimited 1-on-1 coaching calls from a Fidelity advisor)
Bonus
Find special offers here
Investment vehicles
Robo-advisor: Fidelity Go® IRA: Traditional, Roth and Rollover IRAs Brokerage and trading: Fidelity Investments Trading Other: Fidelity Investments 529 College Savings; Fidelity HSA®
Investment options
Stocks, bonds, ETFs, mutual funds, CDs, options and fractional shares
Educational resources
Extensive tools and industry-leading, in-depth research from 20-plus independent providers
Terms apply.
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