Can You Deposit Cash in an Online Bank?

Online banks operate primarily through digital platforms, offering financial services without physical branch locations. This model allows them to provide competitive interest rates and lower fees compared to traditional banks. A frequent question for those considering or using these institutions is how to deposit cash, which presents a different process than with traditional banks. While direct cash deposits are not typically available, several indirect methods allow users to fund their online accounts with cash.

Understanding Cash Deposit Limitations

Online banks do not accept direct cash deposits because they lack a network of physical branch locations or proprietary ATMs designed to handle cash. This difference distinguishes them from traditional banks, which rely on their physical presence for such transactions. Although some online banks partner with ATM networks, these partnerships often prioritize withdrawals or check deposits, and cash deposit functionality is less common or limited compared to traditional bank ATMs. Online banks must rely on alternative methods for cash intake.

Common Methods for Cash Deposits

Several practical, indirect methods exist for depositing cash into an online bank account.

Money Order or Cashier’s Check

Purchase a money order or cashier’s check with cash. Acquire these at post offices, grocery stores, or convenience stores, typically for a small fee (often under $2 for amounts up to $1,000).

Deposit the money order or cashier’s check into your online bank account. This is usually done via mobile check deposit (photo of check) or by mailing the physical check.

Third-Party Retail Networks

Online banks partner with third-party retail networks like Green Dot, allowing cash deposits at stores such as Walgreens, CVS, or 7-Eleven. Generate a barcode in your bank’s mobile app and present it with cash to a cashier at a participating retailer. Funds transfer electronically to your online bank account, often appearing quickly. A fee, up to $4.95 per transaction, is associated with these retail deposits.

Traditional Bank Account

Use a traditional bank account. Deposit cash into your traditional bank or credit union account, then electronically transfer funds to your online bank account. This interbank transfer (often an ACH transfer) is usually free via online banking platforms. While convenient, ACH transfers take one to three business days for funds to become available in the online account.

Select ATM Networks

Deposit cash at select ATM networks. Some online banks partner with networks like Allpoint+ or MoneyPass for cash deposits at certain machines. Locate cash-accepting ATMs using your bank’s ATM locator tool. Confirm that the ATM specifically accepts cash deposits, as not all ATMs in these networks offer this functionality.

Key Considerations for Depositing Cash

When depositing cash into an online bank account, various considerations impact the process and cost.

Fees

Many methods involve fees, such as charges for money orders or service fees from third-party retail networks (up to $4.95 per transaction). Review the specific terms of your online bank and any third-party service to understand all potential costs.

Deposit Limits

Deposit limits are an important factor; online banks and partners often impose daily, weekly, or monthly restrictions. Retail networks may limit deposits (e.g., $500 per transaction, $2,000 daily, $7,500 monthly). Limits vary, so check your bank’s terms to ensure your deposit falls within acceptable ranges.

Processing Times

Processing times for cash deposits vary by method. Retail network deposits become available within hours or the next business day; money order deposits via mobile check or mail take several business days. Electronic transfers from traditional bank accounts also require one to three business days to settle. Account for these processing times, especially if the funds are needed promptly.

Security

Security is a concern with cash. When using third-party services, retain a receipt as proof of deposit. Some retail locations or services require ID for cash deposits (especially over $300) to comply with anti-money laundering regulations. Be prepared to present a valid ID if requested.