How to Deposit Cash Into an Online Bank

Online banks offer convenience and provide competitive rates, but they operate without physical branch locations. This structure presents a challenge for customers who need to deposit physical cash into their accounts. Without a traditional teller window or a dedicated ATM for cash, alternative methods become necessary. This article will explore the various ways individuals can deposit cash into an online bank account.

Understanding Your Deposit Options and Requirements

Depositing cash into an online bank account requires understanding several methods, each with its own specific requirements, fees, and limits. One approach involves retail partners that collaborate with online banks. Many online banks have arrangements with major retailers like Walgreens, CVS, 7-Eleven, and Walmart, allowing customers to deposit cash directly at the register. These services come with a fee, ranging from $3.00 to $4.95 per transaction, and may have daily deposit limits, such as $500 to $1,000 per transaction.

Another method is converting cash into a money order. Money orders function as a prepaid paper form of payment, serving as a secure alternative to cash or personal checks. You can purchase money orders with cash at various locations, including post offices, grocery stores, and some traditional banks. Money orders generally have a maximum value of $1,000, and the purchase fee typically ranges from $1 to $5.

If you maintain a traditional bank account, a solution involves depositing cash into their traditional bank account first. Once the cash is deposited, funds can then be electronically transferred to the online bank account. This interbank transfer (ACH) is usually free, though funds may take one to three business days to become available in the online account.

Some online banks offer cash-accepting ATMs within their partner networks, such as Allpoint or MoneyPass. These specialized ATMs allow direct cash deposits, similar to a traditional bank ATM. Verify with your online bank if they support cash deposits through these ATM networks and to locate participating machines.

Another option involves using a reloadable prepaid debit card. Funds can be loaded with cash at retail locations. Once loaded, transfer the money to your online bank account. This method may involve loading fees and transfer limits.

Step-by-Step Deposit Procedures

Depositing cash into an online bank account requires specific steps for each method.

Retail Partner Deposit

When depositing cash through a retail partner, locate a participating store using your bank’s mobile app or website. At the store, inform the cashier you wish to make a cash deposit, presenting your online bank’s debit card or a barcode from your banking app. Hand over the cash and any applicable service fee, retaining the receipt as proof of the transaction.

Money Order Deposit

To use a money order, purchase it with cash at a post office or grocery store. Make it payable to yourself and keep the receipt. Once you have the money order, you can deposit it into your online bank account using mobile check deposit through your bank’s mobile app. This involves endorsing the back with “For mobile deposit only” and your signature, then capturing clear images of both sides using your smartphone camera. After submitting, confirm details and await bank confirmation. Funds are usually available within one to two business days, though limits may apply.

Alternatively, mail the money order directly to your bank. Endorse it “For Deposit Only” and include your account number.

Traditional Bank Account Transfer

If using a linked traditional bank account, deposit cash at a branch or ATM of your traditional bank. After the cash is available in your traditional bank account, log into your online bank’s platform or mobile app and initiate an electronic transfer. You will need to provide the routing and account numbers of your traditional bank account to set up this transfer. Confirm the transfer amount and details, then submit the request, understanding that the transfer may take a few business days to complete.

Cash-Accepting ATM Deposit

If your online bank supports cash deposits via ATM networks, use its ATM locator to find a cash-accepting machine. Insert your debit card and enter your PIN. Select the “deposit” option and follow the on-screen prompts to feed the cash into the machine. The ATM provides a receipt confirming the deposit, and funds are often available quickly.

Reloadable Prepaid Debit Card Transfer

To deposit cash using a reloadable prepaid debit card, purchase or load an existing card with cash at a participating retail location. Once loaded, access your online bank’s website or app. Look for an option to transfer funds from an external account or prepaid card, then link the card and initiate the transfer. Keep records of all transactions, regardless of the method chosen, for your financial reconciliation.