Have an Online-Only Bank Account? This Hack Lets You Deposit Cash for Free
KEY POINTS
- Online-only bank accounts typically charge a fee for cash deposits, usually $4.95.
- However, you can get around this by opening a Capital One 360 Checking account.
- The Capital One 360 Checking account allows you to deposit $999 daily in cash and make up to five transactions per month.
One thing I dislike about online-only bank accounts is the lack of options to deposit cash without a surcharge. Sure, online accounts typically have higher APYs, no monthly service fees, and even widespread ATM access. And while that's fine for those who can't remember the last time they touched a dollar bill, it can be frustrating for those, like me, who sometimes find themselves with cash in their wallet and want to deposit it.
But, recently, I've discovered a new way to deposit any cash that finds its way into my possession. It's free, easy, and only requires you to live near a Walgreens or CVS pharmacy. If you also want to deposit cash for free, here's how to do it.
Open a free Capital One 360 Checking account
First, some context: I have a SoFi Checking and Savings account (member FDIC), which I love, because it earns an annual percentage yield of up to 4.60%² on my savings and 0.50% on my checking (I also earned a sweet $300 bank bonus after opening the account¹). While I also have a high-yield savings account for emergency cash, this SoFi® account lets me earn interest generously on money I'm about to spend.
The only problem: It charges a $4.95 fee for cash deposits at in-network ATMs. Since my wife gets paid in cash for her side hustle, this has become a problem for us.
Our Picks for the Best High-Yield Savings Accounts of 2024
Capital One 360 Performance Savings
APY
4.25%
Rate info
See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.
Min. to earn
$0
Open Account for Capital One 360 Performance Savings
On Capital One's Secure Website. |
APY
4.25%
Rate info
See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.
|
Min. to earn
$0
|
American Express® High Yield Savings
APY
4.25%
Rate info
4.25% annual percentage yield as of August 25, 2024
Min. to earn
$1
Open Account for American Express® High Yield Savings
On American Express's Secure Website. |
APY
4.25%
Rate info
4.25% annual percentage yield as of August 25, 2024
|
Min. to earn
$1
|
UFB Portfolio Savings Account
APY
5.15%
Rate info
To ensure you keep getting the highest rate at UFB, you'll need to keep an eye on their rates. Occasionally, the bank launches new accounts with higher rates. Existing accounts need to contact the bank to request being moved to one of these new accounts.
Min. to earn
$0
Open Account for UFB Portfolio Savings Account
On UFB's Secure Website. |
APY
5.15%
Rate info
To ensure you keep getting the highest rate at UFB, you'll need to keep an eye on their rates. Occasionally, the bank launches new accounts with higher rates. Existing accounts need to contact the bank to request being moved to one of these new accounts.
|
Min. to earn
$0
|
Enter the Capital One 360 Checking account. This free checking account lets you deposit up to $999 of cash per day (you're limited to five transactions per month) at Walgreens and CVS locations. Once you deposit the cash into your Capital One 360 Checking account, you can then transfer it to your regular checking or savings account. Or, if you like the Capital One 360 Checking account, you can just hold it in this account until you spend it.
How to deposit cash with your Capital One 360 Checking account
You'll get started through the Capital One app. In my app, I just scroll to the bottom and the section that says "Add Cash in Store." Clicking on that, I agree to the terms and conditions and can then select how much cash I'd like to deposit. Again, you're limited to $999 per day and five transactions per month, giving you a total of $4,995 if you were to maximize your limit each day.
Once I enter how much cash I want to deposit, Capital One gives me a barcode. Then, I take this barcode and the cash to the CVS closest to me. The cashier will then count the money in front of me and deposit it in my account. Better yet, the cash is available the same day, just as it would be at a regular bank.
Is it worth opening a Capital One 360 Checking account for free cash deposits?
It depends. If you're frequently dealing with cash -- and your online bank charges fees for cash deposits -- opening a Capital One 360 Checking account would give you a free avenue to cash deposits. Even if you don't frequently have cash to deposit, the account could come in handy for those rare moments when you do (for me, it's usually gift money).
The account has no monthly fee, so even if you don't end up using it frequently, you won't lose money. However, if you like all your accounts in one place, opening a separate one for cash deposits might not be that appealing. In your case, you might be better off banking at a national institution, like Chase, and depositing cash at its ATMs or physical branches.
As for me, I'm satisfied with the free Capital One 360 Checking account for my cash deposits. Capital One will occasionally offer a bonus on this account, too, so check our bank bonuses page to get details when one is available.
Our Research Expert
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
SoFi disclosure:
¹ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus when they set up Direct Deposit of at least $1,000 during the Direct Deposit Bonus Period. Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 12/31/24. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.
SoFi members with Direct Deposit can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the 4.60% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
² SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
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