How to Deposit Money Into an Online Savings Account

Online savings accounts offer a convenient way to grow funds with competitive interest rates. Understanding the various methods available to deposit money into these accounts is important for managing personal finances. Knowing the specific steps for each deposit type ensures a smooth transaction.

Understanding Deposit Methods

Depositing funds into an online savings account involves several common methods. An Automated Clearing House (ACH) electronic transfer is a widely used method, moving funds directly between bank accounts. This system allows for the secure transfer of money from a checking or another savings account at a different institution directly into your online savings account.

Mobile check deposit offers another convenient option, allowing you to deposit checks using a smartphone or tablet. This method involves taking pictures of the check through the bank’s mobile application.

For situations where electronic or mobile options are not preferred, mailing in a physical check remains a viable method. This involves sending a paper check directly to the online bank’s processing center. This method is slower than electronic options.

Preparing for Your Deposit

Before initiating an ACH transfer, link your external bank account to your online savings account. This requires providing the routing number and account number of the external account. These numbers are found on your checks, bank statements, or within your external bank’s online banking portal. Once linked, the online bank verifies the external account through small trial deposits that you confirm.

For mobile check deposits, endorse the check. This involves signing the back of the check and writing “For Mobile Deposit Only.” Place the check on a dark, well-lit, flat surface for clear images. Blurred or incomplete images may lead to processing delays or rejection.

When preparing to mail a check, endorse the check by signing the back. Obtain the correct mailing address for deposits from your online bank. This address is found on their website or by contacting customer service. Use a secure mailing method for physical checks.

Executing Your Deposit

To execute an ACH transfer, log into your online savings account and navigate to the “Transfers” or “Deposit” section. You will then select the external account from which you wish to pull funds and designate your online savings account as the destination. After entering the desired deposit amount, review all details to ensure accuracy before confirming the transaction.

For a mobile check deposit, open your online bank’s mobile application and select the “Deposit Checks” or “Mobile Deposit” option. The app will prompt you to take clear pictures of both the front and back of your endorsed check. After capturing the images, you will enter the exact amount of the check. Review the entered amount and the captured images before submitting the deposit through the app.

When depositing a check by mail, place the endorsed check into an envelope addressed to your online bank’s designated deposit processing center. Ensure the envelope has sufficient postage for delivery. You should then send the envelope through a reliable postal service.

Confirming Your Deposit

After initiating a deposit, you will receive an immediate confirmation, often through an email notification or an in-app message. This confirmation indicates that your deposit request has been received and is being processed. The time it takes for funds to become available varies depending on the deposit method used.

ACH transfers take 1-3 business days to fully process, with funds becoming available after this period. Mobile check deposits may have funds available sooner, often within 1-2 business days, though some banks may offer immediate availability for a portion of the deposit. Mail-in check deposits have the longest processing time, often taking 5-7 business days or more from the time the check is mailed, as it involves physical delivery and manual processing.

Citations

1. Electronic Funds Transfer Act.