Although online banks continue to gain ground in the preferences of American consumers, especially because they have greater advantages, traditional banks beat them in one fundamental respect.
Online banks have come to revolutionize what a bank should offer you. Convenience, high yields on savings accounts, cheaper commissions, among other aspects, have made many consumers prefer them over traditional banks. However, the vast majority of online-only institutions remain unresolved on one big detail: cash deposits.
According to data from Statista, in the last two years, from 2020 to 2022, there has been a growth of just over 20 million active users in online banking, going from 240.1 to 261.4 million customers in the United States.
In a separate survey by GoBankingRates, just over 85% of Americans prefer to do business through their bank’s website or apps, regardless of whether they’re online or traditional. This reflects the enormous convenience that online banking has brought to consumers.
However, despite all the facilities that are available when making many transactions through mobile applications, it is difficult to make cash deposits. Although at the moment there is no study that reflects the reasons why many people do not migrate to online banking, we dare to say that a good part of that decision is rooted in the impossibility of making cash deposits easily.
Online banks usually don’t have a problem accepting mobile or even mail deposits, however, they don’t usually have the tools for their customers to make cash deposits directly to their accounts. This inconvenience can be decisive when choosing between an online bank and a traditional one.
As many know, having cash at home or in your wallet can cause it to be lost or stolen, which is why bank accounts exist. In addition, it is necessary to contemplate in the United States it is less and less common to make payments in cash, since consumers prefer to make payments by credit card, due to security and the accumulation of rewards.
How to make a cash deposit to an online bank account?
Especially, there are three ways to make a cash deposit to an online account, but it requires more effort than a traditional bank.
The first and most common is by making a cash deposit to another account and then transferring the money to the online account, either by writing a check or by making an electronic transfer. Of course, this only works if you have a current account with a traditional bank, however, that means that you could not take the final step to a totally online migration, since you will always depend on a physical branch and maintain two accounts.
As a second option, although risky, is if you trust someone who has a traditional account, you could also request their help to deposit the funds to their account and then make an electronic transfer. It is the same step as the previous one, only with someone else’s account, if you do not have a traditional bank account. It is essential to do it with someone you fully trust, because they could keep your funds without a problem.
Lastly, you can purchase a money order and use mobile deposit and mail it in. However, by doing this you would have to make a payment, which means that you are spending money to make a deposit of your money.
While for many consumers the pros outweigh the cons, not making an easy, fee-free cash deposit can keep others from fully migrating to online banking.