Alternative to Bank Account to Deposit Cash

Deposit Cash

People have access to many alternatives when it comes to depositing cash into a traditional bank’s savings account. Many of these options offer higher interest rates and lower fees and are often accessible online. For anyone that is asking themselves, “where can I deposit cash?” the following are wonderful substitutes to the brick and mortar establishments.

Money Market Accounts

When one puts their money into a money market account, it is secured by the Federal Deposit Insurance Corporation (FDIC), the same as a traditional savings account. The biggest difference is that these accounts offer a higher interest rate. In return for being able to make their money grow quicker, customers must meet a few requirements. This includes a limited number of withdrawals, maintaining a minimum balance, and having a minimum opening deposit. One needs to read the fine print carefully before opening a money market account to avoid penalties.

Certificate of Deposit

A certificate of deposit is a great place to deposit money that one doesn’t need access to for one to two years. In return for committing to keep their cash in the account, they can enjoy higher interest rates. A certificate of deposit works by offering even higher interest rates for money that is kept in longer. Anyone that has extra cash can benefit from these rates, as long as they know they won’t need to touch that money anytime soon. You want to be sure you don’t draw on your funds before they are fully available. There are usually penalties applied to early withdrawals.

Credit Unions

Those that like a traditional bank’s familiar savings account will appreciate what their local credit union has to offer. These establishments provide customers with savings accounts, debit cards, mobile apps, and online banking that is similar to banks’ offerings. The difference is that they are a member-owned, non-profit institute. This allows them to offer better interest rates on their accounts. These accounts can be set up in person, just as they would be at the local bank, and they offer convenient ATMs. As per the experts at SoFi, “Be sure, however, that you know your financial institution’s policies when you deposit at an ATM.” Credit unions are community involved, and they offer excellent customer service.

Online Banking

Online banks are similar to traditional brick-and-mortar banks when it comes to their offerings. They are FDIC insured as well. They provide savings and checking accounts that one can easily deposit cash into. The biggest difference is that they don’t have a building that needs constant upkeep and staffing. They pass these savings on to their customers in the form of minimal fees and some of the highest interest rates available. One can set up their savings accounts online, and then they can access those accounts, make deposits, transfer money, and withdraw funds through the website. Some online banks offer mobile apps as well.

All of these options can help you deposit cash. They all keep one’s cash safe and provide unique benefits that help money grow over time.

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