How to deposit cash with an online bank
While some online banks and credit unions accept cash deposits at select ATM locations, your options may be limited to a small number of machines. For example, the Allpoint Network is one of the most common networks that give credit union members and online banking customers access for withdrawals. However, the network’s locations for cash deposits include just over 1,500 machines that accept money – significantly fewer than the 55,000-plus machines that offer free withdrawals.
ATMs aren’t the only option, though. Depositing cash with an online bank or credit union may involve visiting a partnering retailer and working with a cashier. Depending on how your bank works, you may be able to deposit the money with a debit card or by scanning a code in your mobile banking app.
Other ways to deposit money
If cash is still king in your day-to-day life, there are still plenty of other options for depositing money in an online bank.
- Set up an ACH transfer from another bank: Consider opening a free checking account at another bank with a convenient network of branches or ATMs. You can make your cash deposits at that institution and then set up an ACH transfer to your online bank account. You’ll need to enter the account number and routing number for each account and the details of the transfer. Additionally, keep in mind that these transfers may take a few days to process.
- Set up direct deposit: If your employer offers direct deposit, you can automatically direct a portion or all of your paycheck to your online bank. Again, you’ll need your account number and routing number, but this is one of the easiest ways to deposit your money.
- Get paid by check and use mobile deposit: If digital direct deposit isn’t an option, see about the option for an old-school paper check. Then, open your bank’s mobile banking app to make a mobile deposit. These simply involve a picture of the front and back of the check, and the deposit is typically processed in one business day. Some online banks may have a maximum check amount that you can deposit, says Rita Soledad Fernández Paulino, a CNET Money expert reviewer, personal finance coach and founder of Wealth Para Todos. Be aware of your bank's limits before switching to a fully online account.
Online bank fees for cash deposits
When you’re depositing cash at an online bank, it might also cost you some cash, too. Review the bank's fee schedule prior to opening a new account to find out whether you’ll have to pay when you make a cash deposit. And watch out for ATM or other cash deposit fees: Some partnering retailers may charge up to $4.95 for each deposit. These fees are often not reimbursed by your bank.
How to choose an online bank that lets you deposit cash
When you’re looking for a new bank, your cash deposit capabilities are only one piece of the puzzle. Here’s a rundown of the other key factors you should consider and what to look for before opening a new account:
- Are there extra features that can help you better manage all that cash? Banks and credit unions offer varying levels of technology, but some have tools that can help you save more. Banks can offer savings features that automatically round up purchases to the nearest dollar and transfer that small change to a linked savings account. Others might offer in-app budgeting tools to help you evaluate your spending patterns.
- What other products does the bank offer? If you don’t want to juggle one checking account at one bank, a savings account at another and an investing account somewhere else, you may want to choose a bank or credit union that has an extensive lineup of services – not just one type of account.
- What are the transaction limits? Banks and credit unions typically only let you deposit and withdraw a certain amount of money each day. If you regularly deal with a lot of cash, make sure you find a bank or credit union that will take all of it at once.
- Is it part of the FDIC or NCUA network? Verify that your money will fall under federal protection, which guarantees your money is safe up to $250,000 per account in case of bank failure. For banks, use the FDIC’s tool to look up any institution you’re considering, and for credit unions, use the NCUA’s database.
Methodology
To choose the best online banks for cash deposits, we compared terms and conditions from more than a dozen leading online banks and credit unions. To narrow our list, we chose institutions that checked the following boxes: widely available with limited or no membership/customer restrictions, no monthly service fees, low or no minimum opening deposit requirement, and the ability to make deposits for free or a low fee. Additionally, while we focused on the deposit functionality, we also evaluated the bank’s willingness to reimburse fees for cash withdrawals.
