The best thing to do when you have extra money is to put it in a bank account. In this manner, the money is shielded from damage, loss, or theft.
But how should you deposit cash and what are your options if you want to use an ATM or an online bank account?
Your Community Bank
If you have a physical account with a bank or credit union, you can visit a branch with cash to deposit it there. If you deposit money into savings, you’ll begin to earn interest right away, and there shouldn’t be any fees associated with the deposit.
You should be able to pay bills, transfer money to another account, and make purchases with your debit card after making a deposit in person with a teller. Banks and credit unions must make your cash deposit available for withdrawal or use it to pay your checks and debits by at least the following business day.
Benefits of credit unions
It’s a good thing there are lots of branches around. You can deposit cash at any member branch—not just your home credit union—if you bank at a credit union that participates in the shared branching network. If you’re on the go or have moved since opening an account, that might make life easier.
Depositing money through an ATM
There is no longer a need for bankers’ hours because you can deposit cash at ATMs with a fair amount of confidence today.
How to Make Deposits at ATMs
Using an ATM to deposit money varies depending on the bank. Verify first that deposits are accepted by your ATM. Typically, you access your account with your debit card and PIN, choose the account to which you want to make a deposit, and then proceed. While other ATMs require you to place cash in an envelope and wait for a bank employee to count the money, some ATMs read and count the bills as you insert them. What method you’ll employ should be specified by the ATM. An envelope is usually available next to the ATM if it needs one. As directed, complete the envelope, place your money inside, seal it, and feed it into the machine. Verify that the ATM deposited the correct amount into the appropriate account before you leave.
Availability of funds
While it is convenient to deposit money using an ATM, you should be aware that even though you are depositing cash, the money may not be available in your account right away. Most policies (and federal law) permit banks to hold funds for an additional day, and the hold may last longer depending on who owns the ATM. In-person deposits are the best if you need money right away.
Only-Online Banks
The process may be more difficult, but it’s not impossible, if you’re trying to deposit cash into an online bank account. Putting money in an online bank enables you to benefit from some of the best savings rates in the country. A few approaches are effective:
- ACH transfer: The quickest method is to make a cash deposit into a bank or credit union account physically located in your area, and then transfer the money to your online bank account. This tactic is just one of the good reasons to keep a brick-and-mortar account open. Even faster are wire transfers, but depending on the bank, they can cost anywhere from $15 to $27 for domestic transfers.
- ATM deposits: A few online banks accept deposits made at ATMs. Look for network logos on ATMs nearby and check with your bank to see if you can use a specific ATM network. A tool for finding ATMs is probably available on your bank’s mobile app.
- Prepaid cards: If your bank doesn’t allow cash withdrawals from ATMs, a prepaid debit card might be an option. Some prepaid debit cards let you deposit cash, and you might be able to connect your prepaid account to your online bank account. You can now perform electronic transfers just like you would if you went to a physical bank thanks to this. Find a prepaid card that enables you to “cash load,” or make deposits, at retail establishments like Walmart or big-chain pharmacies. Utilizing a debit card that can be reloaded by purchasing reload cards is an alternative strategy. The reload card will be purchased with cash, and you will then fund your prepaid account with those funds. To avoid being discouraged from using that option, find out how much it will cost to add money to your card before taking that route.
- Money orders: If your bank allows mail-in deposits, you can use cash to purchase a money order and send it to your bank. Even though it’s a drawn-out process, that might be your only choice.
Small deposits might not be worthwhile because you’ll have to pay a fee for each money order, which is typically around $1 at grocery and convenience stores or $1.25 through USPS, plus postage.
Money orders can also be deposited using the mobile deposit app provided by your bank. While this reduces the amount of mail that must be sent, some banks do not accept money order deposits, and you will still need to physically pick up the money order.
Before you go out and purchase a money order, find out how your bank handles them by reading your deposit agreement.
Deposit Slip
Usually, you need to use a deposit slip when you deposit cash at a bank or credit union. That’s just a slip of paper telling the teller where to put the money. On the deposit slip (deposit slips are typically available at the lobby or drive-through), write your name and account number. The first line on the right side of the deposit slip, which is typically labeled “CASH,” is where you should enter the amount of your deposit.
Avoid mailing cash
Never send cash by mail, no matter what. The U. S. Although the mail system is very secure, the risk is not worth it. You’re out of luck if your letter is taken or lost. Unfortunately, there is no way to find or recover lost cash.
Try using a money order if you can’t deposit cash into a bank account and are tempted to send something through the mail.
A money order, in contrast to cash, is only good for one person or business. Bring your cash to any place that issues money orders, and mail the money order—along with a deposit slip or whatever else your bank requires for mail deposits—to your bank. If the money order is stolen or lost, you will be able to track it and cancel it. In comparison to losing all of your money, money orders and stamps can be pricey, but they are still preferable.
Employ cash substitutes
Try using it less frequently if depositing cash is a hassle. Ask for alternate forms of payment: You can frequently receive money through online transactions, checks, or money orders.
- Peer-to-peer, or P2P, payments can be made without charge using PayPal, a trusted service. You can easily open a PayPal account if you don’t have one already.
- Your bank account might already include Zelle and Popmoney. Both companies might let you move money for free through Zelle transfers, which could be practically instant. 6 At Popmoney, it costs nothing to send or receive money. Cost is $. 95 to transfer funds.
- Sending money online is simple and occasionally free with Venmo. 8 If you choose to pay with Venmo rather than cash, keep in mind that, like cash payments, Venmo payments frequently cannot be reversed.
Question and Answer (FAQ) pages
How is a large amount of cash deposited?
Large cash deposits can be made at an ATM, in person, or by adding money to or loading a prepaid card. So, regardless of the amount of money, the procedures remain the same. However, it might be best to make a sizable deposit in person so you can verify the amount and correct any mistakes with the teller.
Large cash deposits should be made only during business hours, so companies should think about using a secure bag or their overnight deposit box.
How can money be deposited into another person’s bank account?
You might be able to make a cash deposit in person by going to a bank or credit union, telling the teller that you want to make a cash deposit into someone else’s account, and giving them the name and account number of that person. Cash deposits into other people’s accounts are not permitted by all banks, though. If so, you might want to deposit money using Zelle, Venmo, PayPal, or another service.
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