Online banks have been on the rise for their convenience and flexibility in adapting around our busy schedules. Although, it is still a small fraction of the banking market, they are growing and some may even claim that an online bank account has better accommodations to their needs. They essentially have everything a traditional bank has, except a physical location.
If you are thinking about making the switch to a completely online bank, you should be aware of all of the possible ways to deposit cash into an online bank account. You may be surprised about how many options are made available to you and through what means can cash deposits can be made.
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Depositing Cash into Online Banks
Checks can be easily deposited to an online bank but when it comes to cash deposits, you might notice how limited the flexibility of online banks accepting cash deposits. Don’t let this limitation discourage you from joining an online bank. There are many ways that you can transfer money but just be wary of the extra fees or drawbacks of the certain options listed below.
Easily one of the most popular forms of cash deposits, online banks are often a part of a form of nationwide ATM network. So you wouldn’t have to worry about those ATM fees that traditional banks often charge you for using foreign ATMs.
It is imperative that you check with your bank’s policy on ATM use, as some do not accept cash deposits or will place a hold on the deposit that has been made on an unauthorized ATM.
Another option is to link another external checking account to transfer money to the online account. And the account doesn’t have to be yours. As long as it’s another checking account, yours or even your friend’s, you can transfer funds to the online bank.
Note that banks can charge bank-to-bank transfers on the sender’s account. The account that is sending money via ACH transfer may be charged but the online bank generally do not charge a fee.
Money orders, similar to a check with a prepaid amount of money, can be used to fund your online account. To deposit the money order, simply use the mobile banking app on your smart phone to transfer the sum via mobile deposit.
You would basically treat the money order like a regular check except the online difference is that there is a small fee in buying them. They usually run around or even less than $2 for a $1,000 money order check.
Re-loadable Prepaid Debit Card
A prepaid debit card is recommended if you make frequent cash deposits and since its re-loadable, you don’t have to worry about constantly buying new prepaid debit cards just to fund your account.
You can add cash to the debit card at a local retail store or bank and link the online bank to your card. There may be a daily or monthly deposit limit on the card and it may have a wait time before you can access those funds. But once the card is loaded and funded, you can send the money to your online bank!
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Here are some of the ways to deposit cash into an online bank and the pros and cons of each different type of cash deposit. Don’t be discouraged about using an online bank. You’ll be surprised about the convenience and flexibility in an online bank despite being bounded by a few limitations.
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