It’s best to put any extra money in a bank. So, the money is protected from theft, loss or damage.
What’s the best method to deposit money and what options are there if you plan to use an ATM or online account?
Your Local Bank
You can deposit cash at any branch of a brick and mortar bank, credit union or savings account. If you deposit money into savings, you’ll earn interest almost immediately. You shouldn’t have to pay any fees.
You can use your debit card to make purchases, pay bills or transfer money from one account to another. Banks and credit unions must wait until the following business day before they can make your deposit available for withdrawal or use to cover checks and debits.
Credit Union Benefits
You should have plenty of nearby branches. You can deposit money at any branch of a credit-union that is part of the network. This could make it easier to deposit cash if you are traveling or have moved since you opened your account.
ATM Deposits
Today, you can make a cash deposit at an ATM in a reasonable amount of confidence. (This means that banker hours are no longer necessary).
How to Make ATM Deposits
Banks have different procedures for depositing money at ATMs. Confirm that your ATM accepts cash deposits. You’ll typically use your PIN and debit card to access your account. Then, select the account you want to deposit into. Some ATMs count bills as they are inserted, while others ask you to place the cash in an envelope. A bank employee will then count the money. You should be able to see on the ATM which method you will use. If an envelope is required, it’s usually available next to the ATM. Seal the envelope and insert the cash. Then, fill out the envelope according to the instructions. Check that the ATM has deposited the correct amount into the account before you leave.
Funds Available
While ATM deposits can be convenient, the funds may not appear immediately in your account after you make a deposit — even if it’s cash. Banks are allowed to hold money for up to a day under most policies and federal laws. The hold may last longer depending on the owner of the ATM. In-person deposits work best if you need to deposit money quickly.
Online-Only banks
It may be more difficult to deposit money into an online account. But it is not impossible. You can take advantage of the highest savings rates by depositing your money into an online account. You can use a couple of methods:
- ACH Transfer: You can deposit money into a bank account in a brick and mortar bank or credit union, then transfer it to your online account. It’s important to keep a brick and mortar account open for this technique. Even faster are wire transfers, but depending on your bank you might have to pay a fee.
- ATM deposits: Some online banks accept deposits at ATMs. You can check with your bank if you are allowed to use a specific ATM network. Look for the logos of that network on ATMs in your area. The app of your bank may also have an ATM locator.
- Prepaid Cards: A prepaid card can be used to avoid cash withdrawals at ATMs if your bank does not accept it. Some pre-paid debit cards allow you to deposit cash and link your account with your online bank. 3 You can then make electronic transfers just as if you were using a brick-and mortar bank. You can find prepaid cards that allow you to make cash deposits at stores like Walmart and national pharmacy chains. You can also use a debit-card that allows you to reload it by purchasing reload cards. You will pay cash for the card and then add that money to your prepaid account. Find out the cost of adding money to your card before you use it.
- Money Orders: If you bank accepts mail deposits, then you can purchase a money order and send it to your bank. It’s a long and tedious process, but you may have no other choice. Money orders are expensive (often $1 or $1.25 at convenience stores and grocery stores, but $1.25 via USPS), so making small deposits may not be worth the cost.
- Mobile Deposit: You can also deposit a money-order using the mobile deposit application of your bank. It saves you time on the mail, but it’s still necessary to get the money order. Some banks do not allow money order deposit.
Before you buy a money order, ask your bank about how it handles them (or check your deposit agreement).
The Deposit Slip
In order to deposit money at a credit union or bank, you will need to fill out a deposit slip. This is a piece of paper which tells the bank teller where the money should be placed. On the deposit slip, write your name and the account number (deposit forms are available in the lobby or at drive-throughs). You should write your deposit amount on the first line of the deposit slip, which is usually labeled as “CASH” (usually located at the drive-through or lobby).
Do not mail cash
Never ever send cash via the mail. It’s not worth it to take the risk. The U.S. postal system is very safe. You’re screwed if your letter is lost or stolen. When cash is lost, it’s impossible to find the money.
Money orders are an alternative to using the postal service if you cannot deposit cash in a bank and feel tempted to do so.
Money orders are not as flexible as cash. They can only be used by one person or business. You can take your cash to a money order seller and mail the money order (alongside a deposit slip or whatever else your bank requires) to your bank. If the document is stolen or lost, you can track it and cancel it. 5 1
Use Cash Alternatives
Try to deposit less cash if it is a hassle. You can ask people to pay in another way. Online payments, money orders, and checks are common methods of payment.
- PayPal is an established service that offers peer to peer, or P2P payments. You can easily open a PayPal account if you do not already have one.
- Popmoney and Zelle are likely already part of your account. Zelle transfers can be almost instantaneous, and you may not have to pay any fees. 6 Popmoney offers free services for receiving money or paying requests. Sending money costs $.95. 7
- Venmo is a great way to send money to someone online. Sometimes it’s even free.
FAQs (Frequently Asked Questions)
How can I deposit large sums of cash?
You can deposit large amounts of cash at an ATM, by hand, or you can load funds onto a prepaid debit card. The methods are the exact same, regardless of how much cash you have. It may be better to deposit large amounts of cash in person, as you can verify the correct amount and discuss any mistakes with the teller.
Businesses who need to deposit large sums of cash can use a secured bag or their overnight deposit box to do so after hours.
How to deposit money into another person’s account
If you visit a credit union or bank in person, tell the teller that you would like to deposit money into another person’s account. You will also need to provide their name and account number. You may not be able to deposit cash in someone else’s bank account. You can use Zelle or Venmo to deposit money.
