Can You Deposit Cash If You Have an Online Bank?

Online banks offer many conveniences and often feature lower fees compared to traditional financial institutions, operating without the overhead of physical branches. While their accessibility and cost-effectiveness are appealing, a common challenge arises when customers need to deposit physical cash, as direct over-the-counter deposits are not possible.

Ways to Deposit Cash

Many online banks partner with large ATM networks, such as Allpoint or MoneyPass, allowing cash deposits. To use this method, locate a participating ATM through your bank’s app or website, insert your debit card, select the deposit option, and feed your cash into the machine.

Retailer cash deposit services, such as those offered by Green Dot, allow you to convert physical cash into a digital deposit at major retail locations like pharmacies and grocery stores. This involves presenting your online bank’s debit card or a barcode from your bank’s app to the cashier, who processes the deposit directly into your account.

Converting your cash into a money order or cashier’s check provides another pathway to deposit funds into an online bank account. You can purchase money orders at various locations, including post offices, convenience stores, and some grocery stores, by paying with cash. Similarly, cashier’s checks can often be obtained from traditional banks or credit unions. Once you have the money order or cashier’s check, you can deposit it into your online bank account using mobile check deposit through your bank’s app, or by mailing the instrument to your bank.

If you also maintain an account with a traditional bank, you can deposit physical cash there. Once funds are available, initiate an electronic transfer, such as an Automated Clearing House (ACH) transfer, from your traditional bank account to your online bank account.

What to Know Before Depositing Cash

Be aware of potential fees when depositing cash. Retailer cash deposit services often charge a service fee per transaction, typically $4.95 to $5.95. Purchasing a money order or cashier’s check also incurs a fee, usually $0.70 to $1.50 for a money order at a post office, or higher for a cashier’s check. While many online banks offer surcharge-free ATM networks, some third-party ATMs might charge a fee, though some banks may reimburse these.

Deposit limits are another consideration, as these can vary significantly depending on the method used and the specific online bank. Retailer services may impose daily limits, such as $500 per day, and monthly limits, which could be around $2,500. ATM cash deposits also often have daily limits, commonly ranging from $1,000 to $3,000, and some banks may enforce weekly or monthly caps. Review your online bank’s terms or contact customer service to understand specific limits for each deposit method.

The time it takes for deposited cash to become available in your online bank account can also differ by method. Cash deposits made through retailer services are often processed almost instantly, with funds appearing in your account within minutes. ATM deposits generally clear within the same business day or the next business day, depending on the time of deposit and the bank’s cutoff times. However, depositing a money order or cashier’s check via mobile deposit or mail can take several business days for the funds to fully clear and become accessible, similar to standard check deposits.

It is always prudent to keep detailed records of any cash deposits, including receipts from ATMs or retailers. These records serve as proof of transaction in case any discrepancies arise. Additionally, some online banks may place temporary holds on larger deposits for verification purposes, especially if they are unusual for your account activity. Understanding your bank’s specific policies regarding holds and verification can help manage expectations regarding fund availability.