The content of this article is provided for informational purposes only. You should always obtain your own independent, tax, financial, and legal advice before making any material decision.
Looking to deposit money for the first time or discover a new and better way of doing it?
Depositing money into a bank account can be easy, flexible, and convenient in today's digital-first world. But with a variety of options available — from direct deposit to mobile transfers — it can be challenging to identify the right one to use.
Whether the focus is on digital methods or depositing money in person, this article covers some of the options available to help navigate the different ways to deposit money into a bank account.
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Bank deposits involve giving money to the bank for safekeeping. This increases the bank's funds, which they can then lend to others.
Individuals can deposit money in the form of cash, checks, or an electronic transfer. The bank credits the account, and the account holder can withdraw those funds, sometimes earning interest.
Making a bank deposit is typically straightforward. Whether in person with a teller, at an ATM, or through a mobile app, all deposit methods allow individuals to add money to an account.
Below is an overview of various ways of depositing money.
Direct deposit is an electronic transfer of funds directly from a payer's account into a recipient's bank account, eliminating the need for paper checks. This method is common with individuals who receive regular payments, such as a paycheck or government benefits.
With direct deposit, banks automatically transfer funds into the recipient’s account on a set schedule.
Money transfer apps, like PayPal, are used to send and receive money. Used on smartphones or other devices, the apps are often linked to bank accounts, debit cards, or credit cards for funding and receiving payments. Most apps use encryption to protect user data and verify sender and recipient details.
A mobile check deposit allows users to deposit a paper check online into their bank account using a smartphone or tablet. Individuals use the bank's mobile app to take a photo of the front and back of the endorsed check.
The app then transmits these images and the deposit information electronically to the bank for processing, eliminating the need to physically visit a branch or ATM to deposit the check.
Many banks have ATMs that accept cash and checks. However, ATMs are available elsewhere, such as in convenience stores, malls, and restaurants. To deposit with an ATM, insert the card, enter the PIN, and choose “make a deposit”. Ensure the card and receipt are retrieved after the transaction is complete.
If you want to handle your banking transactions in person, you could visit a bank branch and make a deposit with a teller.
This entails transferring money from one account to another using online banking or a mobile app. This money transfer is usually instant or takes as little as a few hours. Users can usually set up one-time or recurring transfers, too.
Many banks offer online banking services that allow users to transfer funds between accounts, even if they are at different banks. Fees may apply.
Wire transfers can be useful for transferring large amounts of money quickly between different banks or financial institutions.
This type of electronic payment moves money from one account to another. Individuals can initiate wire transfers online or through a bank branch, typically for large or international transfers. Make note that they may be subject to fees.
ACH (Automated Clearing House) is an electronic funds transfer system that allows money to move between bank accounts. It can be initiated through a bank's online platform or mobile app and can be used to receive and send secure payments from individuals or businesses.
Payment apps such as PayPal are considered peer-to-peer payments (P2P) and allow users to send and receive money from friends and family in the app directly from their smartphone or tablet. These apps often link to a bank account for easy transfers. Fees may apply.
A third-party transfer involves moving funds from one entity’s bank account to another’s. It can occur within the same financial institution or across different ones.
With a check, simply write the recipient's name on the "Pay to the Order of" line. When the recipient deposits the check, their bank will credit their account with the funds. Similarly, with a wire transfer, users can send money to another bank account as long as they have the correct corresponding bank details, including the recipient's account number and routing number.
Deposits will vary based on how long it takes for the money to become accessible and the amount of interest earned. The two main types of deposits are:
Users who wish to use PayPal as an alternative solution for money deposits can do so easily, even though PayPal is not a bank.
Using a PayPal Balance account:
Depositing a physical check:
Typical money deposit methods may not be for everyone. For those who don’t have bank accounts or wish to deposit at a later date, for example, these alternatives may be a better option:
When it comes to managing money, adding funds to a bank account plays a major role. So, whether receiving a birthday check, regular paystub, or a money transfer from one bank account to another, it’s important to choose the money management method that works for your individual circumstances.
PayPal is not a bank, so learn more about the different ways to deposit money with PayPal direct deposit.
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