How to Deposit Cash at an Online Bank

Deposit Cash in a Store

Some online banks partner with retailers like Walgreens, CVS and 7-Eleven to accept cash deposits in-store at participating locations nationwide using your banking app or debit card. Check with your online bank to find out whether they offer in-store cash deposits, and to get details on how to make a deposit, possible fees involved and funds availability.

Pros

• Going to a retail location may be more convenient than visiting a branch. Locations are plentiful and may be open during hours when traditional bank branches are closed.
• In-store cash deposits are sometimes fee-free, though you should check with your bank for confirmation.
• Your funds may be available within minutes, or at least on the same day.

Cons

• Some online banks don't offer this service.
• There may be limits on the size and frequency of in-store cash deposits.
• Retailers may charge for processing deposits. In-store deposits through the Green Dot Network cost $4.95, for example.

Find a Local ATM

Good news: Many online banks offer access to ATM networks with locations nationwide. The bad news: Many ATMs will be out of network and won't accept your deposit. And even in-network ATMs may not accept cash deposits. Start by asking your bank whether and where they accept ATM cash deposits—and what alternatives they suggest if depositing cash at an ATM is not an option.

Pros

• Your online bank may participate in an ATM network that has thousands of fee-free locations nationwide.
• You can use your bank's online or in-app ATM locator to find a location near you.

Cons

• Not all ATMs take cash deposits. You may need to do a bit of extra detective work to find an ATM that does what you need.
• Not all cash-taking ATMs are in your bank's deposit network. Typically, banks only accept deposits at in-network ATMs. Before you feed your precious cash into an ATM, make sure the deposit will go through to your online account.
• Safety can be a concern. If you need to deposit a large amount of cash, make sure you aren't fumbling around with it at the ATM. Count your cash and put it in an envelope before you go. Use a location that's well-lit and be aware of your surroundings at all times.

Buy a Money Order

While depositing cash online can be a challenge, depositing a money order may not be. You can use cash to purchase a money order (made out to yourself) at a bank, post office or participating retailer, then deposit your money order using your mobile banking app.

Pros

• Money orders are widely available. You can typically purchase one from a bank, credit union, post office or supermarket.
• While they do cost money, money orders aren't expensive. Typical fees are in the $1 to $5 range.

Cons

• Getting a money order is a minor inconvenience. You have to visit a location and do an in-person transaction.
• Check with your online bank to make sure your mobile deposit feature accepts money orders. If not, you may be able to get a cashier's check from a local bank or credit union, which may cost a bit more but functions like any other check you deposit to your account.

Bank Locally, Transfer Online

If you have an account at a local bank or credit union, you can deposit your cash there and transfer the money to your online account using any of the following means:

• Write yourself a check and deposit it with your banking app.
• Set up a bank-to-bank (ACH) transfer to send money electronically to your linked account.
• Use a service like Zelle to transfer money instantly from account to account.

Pros

• It's a good idea to set up online transfers between your local account and your online accounts so you can move money between them anyway. Chances are, you've already done this.
• Transfers like these are often fee-free, unless you pay a per-check charge for writing checks.

Cons

• Visiting a bank branch and then doing an online transfer still involves multiple steps.
• ACH transfers can take up to three days to post, which may hold up access to your funds.

Get a Prepaid Debit Card

You can purchase prepaid debit cards with cash, then transfer funds to your online account. Some prepaid cards are reloadable, so you can add cash to your prepaid balance at any time. Find out how to transfer money from your prepaid card to your bank account by visiting the card's website. You should be able to transfer funds using your bank's routing number and your account number.

Pros

• Prepaid debit cards are readily available from retailers like Target and Walmart, or at supermarkets. Your bank or credit union may also offer them.
• In a pinch, you can use the prepaid card to make purchases or pay bills instead of depositing the money into your bank account.

Cons

• Prepaid debit cards usually have fees attached. Typical fees include card activation, monthly maintenance, ATM and international transaction fees. You may even pay to load your card or use it to spend.
• If you forget to register your prepaid card, your card may not be protected from loss, theft or fraud.

The Bottom Line

If depositing cash is a rare occurrence for you, using any of these methods will get the job done. If you have a frequent need to make cash deposits—for instance, if you work as a bartender or hair stylist and make cash tips—it may be a higher priority to make sure your online bank account offers a convenient (and affordable) way to accept cash.

You may want to look for an online bank that accepts fee-free deposits at a local retail location or ATM, or consider maintaining a checking account locally and high-yield savings, certificates of deposit (CDs) or money market accounts at an online bank to take advantage of exceptional rates.