How can cash be deposited at a direct bank?
An adult man bank customer making a financial transaction with a bank teller over the counter in a retail bank. The woman caucasian bank teller is smiling and cheerfully providing the customer service. Photographed behind the shoulder of the customer in a horizontal format.

How can cash be deposited at a direct deposit bank?

Normally, direct banks do not have their branch network. This is usually not a problem for bank customers, since they can do most of their banking transactions over the Internet or by telephone. Withdrawing cash is also not a problem – be it thanks to the direct bank being part of an ATM network or using the credit card associated with the account. However, if an account holder wants to deposit money into his checking account, he is often faced with the question of how to do it.

First of all: As with any bank, direct bank customers also have the option of making deposits. Only the how is regulated differently from bank to bank – as are the costs.

The branch bank subsidiary: Cash deposits are often free here

Some banks allow you to direct deposit cash free of charge. This applies in particular to the direct banks, which are connected to the branch network as a subsidiary of a branch bank. Such a connection between direct and branch banks exists, for example, between 1822direkt and Frankfurter Sparkasse (but branches of third-party savings banks are excluded), and Deutsche Bank, or between direct and Bank. For customers of such direct banks, this means they can take their bills and coins to the bank free of charge. Deposits can be made in the respective branches of the higher-level branch banks, sometimes at the counter, but definitely at the banking terminal.

Third-party deposits: subject to a fee, with a few exceptions

And what about direct banks that are not connected to the branch network of a parent company? These money houses often only allow direct customer contact at their headquarters. If you don’t want to travel several hundred kilometers through Germany to bring your money to the bank, the only option is to visit a third-party bank. There he can make a so-called “external deposit with transfer” – however, the banks that accept the money often charge a good fee for this service. Some financial institutions charge a flat rate of up to 15 euros for such third-party deposits. Others calculate the fee as a percentage discount of around one or two percent – ​​but they usually charge a flat minimum fee of a few euros here too.

However, the customer does not always have to bear these fees. For example, both Netbank and ING-DiBa have reached an agreement with Reisebank that allows the account holders of the two direct banks to make third-party deposits free of charge in all Reisebank branches.

Use direct deposits to use your cash to generate market interest rates on your dormant cash balances or invest your cash in stocks, options, futures, forex and fixed income products on over 120 exchanges worldwide at a lower cost.

Setting up a direct deposit is quick and easy—simply provide IBKR’s routing information and account number to your employer or paying entity.

Helpful IBKR Direct Deposit Suggestions:

  • Contact your employer, federal agency, or any entity that sends you recurring payments and let them know you want to set up direct deposit or make changes to your current direct deposit agreement. Some employers or paying entities may give you the option to split your direct deposit into multiple accounts. We recommend that you contact your employer or paying institution directly.
  • If you would like to receive your Benefits directly into your deposit, please visit the Social Security website to set up a direct deposit online at call Social Security at 1-800-772-1213 .
  • The IRS allows direct deposits, whereby you can split your repayments into three different accounts.
  • If you wish to have your tax refund transferred to an account, please complete the two lines in the Refunds section of IRS Form 1040 or 1040A.
  • If you wish to receive your tax refund on multiple accounts, you must complete the IRS Allocation of Refund Form 8888. Please be sure to indicate on IRS Form 1040 or 1040A that you are attaching Form 8888.