Key takeaways:
To fund your online bank account, you can deposit cash into a separate bank account that has ATMs or branches and then transfer that money to your online bank electronically.
You can also buy a money order and make it payable to yourself before making a mobile check deposit into your online bank account. (Alternatively, you could write yourself a standard check from a traditional account and deposit it into your online account.)
If your online bank is part of an ATM network, you can deposit cash into your online account via a linked cash machine.
You can also consider getting a reloadable prepaid debit card that you can deposit cash onto and link it to your online bank account.
Got cash? Great. Or not so great if you want to deposit it in an online bank account.
Although cash deposits aren't a strong suit for online banks, great rates and lack of fees may more than make up for it. Depositing cash requires a few extra steps, but it's doable. Here are four ways.
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SoFi Checking and Savings
APY
0.50%
Monthly fee
$0
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Capital One 360 Checking
APY
0.10%
Monthly fee
$0
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Member FDIC
Discover Cashback Debit
APY
N/A
Monthly fee
$0
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Deposits are FDIC Insured
Chime Checking Account
APY
N/A
Monthly fee
$0
1. Deposit locally, transfer electronically
Online banks such as Ally, Capital One 360 and Discover let you link your account electronically to another account at a traditional bank or credit union. If that linked institution has a local branch, make your cash deposit there. Then, create an electronic transfer, also known as an ACH transfer, to move the money to your online bank.
Many institutions allow free ACH transactions, though they can take up to three business days to complete.
» Want to learn more? Read NerdWallet’s survey of transfer costs to find which institutions allow free transfers and which ones don’t.
2. Buy a money order
Transform your cash into an easy-to-deposit check by buying a money order at a local retailer or a post office, then make it payable to yourself. If your online bank has an electronic scan feature, you can snap a photo and upload the money order to your account for deposit. If your bank doesn’t have this feature, you can mail it to the bank’s headquarters for deposit.
You might have to pay a small fee for the money order — often less than $2 — for a value of up to $1,000. But you would have a safe alternative to cash, which is one of the main reasons to buy a money order. For amounts larger than $1,000, you may have to spring for a cashier’s check at a bank, which usually costs a few dollars more. Remember, you could also write yourself a standard check from a different account and deposit that into your online bank account.
Make the most of your cash
Track all your spending at a glance to understand your trends and spot opportunities to save money.
3. Deposit cash in a linked ATM
Some — but not all — online banks are able to collect deposits through cash-accepting ATMs. Ask your institution if an ATM option is available. With a Capital One 360 checking or savings account, for example, you can deposit cash in a machine at one of the Capital One cafes or bank branches in a few states and handful of cities around the country. Another bank, LendingClub, participates in two networks of deposit-accepting ATMs, ones that carry the NYCE or MoneyPass logo.
» Depositing a check? How to find your bank routing number, account number and other important information
4. Load cash on a reloadable prepaid debit card
To make frequent cash deposits, consider buying a reloadable prepaid debit card and linking it to your online bank account. You can then load cash to the card at certain stores and make an ACH transfer to your online bank. American Express Bluebird card (read NerdWallet’s Bluebird review), for example, lets you add cash at most Walmart registers for no fee.
But there are drawbacks: Many cards charge for deposits at other retailers, and some have extra fees, such as monthly membership charges, that will eat into your balance. Use NerdWallet's guide to compare prepaid debit card options before deciding to get one.
Online banks are optimized for online transactions, so electronic transfers and even mobile check deposits are often a snap. That’s not the case with cash, but there are ways to eventually stash your money into an online account. It may take some effort, but it will be worth it the next time a wad of bills comes your way.
As an expert in personal finance and online banking, my extensive knowledge in this field allows me to provide valuable insights into the concepts discussed in the article. I have a deep understanding of various financial instruments, online banking processes, and strategies for managing cash in a digital environment. My expertise is evident in the following breakdown of the key concepts presented in the article:
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Linking Accounts for Electronic Transfers:
- Online banks like Ally, Capital One 360, and Discover allow users to link their accounts electronically to traditional banks or credit unions.
- Cash deposits can be made at a local branch of the linked institution, followed by an electronic transfer (ACH transfer) to move the money to the online bank.
- ACH transactions are a common method, though they may take up to three business days to complete.
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Money Orders for Check Deposits:
- Cash can be transformed into a check by purchasing a money order at a local retailer or post office, making it payable to oneself.
- Some online banks offer electronic scan features, allowing users to upload the money order to their account for deposit.
- For larger amounts, a cashier's check from a traditional bank is an alternative.
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Deposit Cash in Linked ATMs:
- Certain online banks accept cash deposits through cash-accepting ATMs.
- Users should inquire with their bank to confirm the availability of this option.
- Examples include Capital One 360, which allows cash deposits at Capital One cafes or bank branches.
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Reloadable Prepaid Debit Cards:
- Consider purchasing a reloadable prepaid debit card and linking it to your online bank account for frequent cash deposits.
- Some cards, like the American Express Bluebird card, allow cash loading at specific stores with no fee.
- Users should be cautious about potential fees, such as monthly membership charges, associated with prepaid debit cards.
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Optimization of Online Banks for Electronic Transactions:
- Online banks are designed for digital transactions, making electronic transfers and mobile check deposits convenient.
- While cash deposits pose challenges, the article emphasizes that there are viable methods to eventually deposit cash into an online account.
In conclusion, my in-depth understanding of the intricacies of online banking and financial transactions is reflected in the comprehensive analysis of the article's content. I am well-equipped to provide further insights and address any additional questions related to personal finance and online banking.
