Long gone are the days when we have to queue up waiting to be attended by bank representatives. Nowadays, a majority of bank transactions can be done within the comfort of your own home. Thankfully, this includes a mobile check deposit.
Not only have most banks make check deposit quite convenient for their customers, but also reduce the time it takes for check funds to be available. On this article, you and I are going to explore about this process and what exactly it is, so you can take advantage of it too.
There is a high chance your bank has a feature where you can deposit a check through your phone. Here is what I need you to know about it.
What Is Mobile Check Deposit?
A mobile check deposit is an online banking feature, which lets you deposit a check with your phone. It is something traditional banks started doing in the early 2000’s. Congress made a law- Check 21 Act in 2003, which lets banks accept checks by electronic means. Without the Act, mobile banking today will be limited.
Is this method of cashing a check safe?
Yes, banks’ check cashing features are safe. I elaborated more on Are Check Cashing Mobile Apps Safe? What To Know article. On the article, I talked about how the mobile banking apps are often encrypted to prevent third parties from having access to your information. You can read the article to gauge how safe it is for the transaction you want to do.
Although most American banks have a mobile deposit feature that lets us cash checks online, not all checks are accepted through this system. Each bank has a specific kind of check it will accept through its mobile check deposit feature. Checks like cashier’s check, personal checks, government-issued checks and business checks are accepted.
While some checks like money orders, third-party checks or promissory notes will not deposit through this method. Banking policies differ from bank to bank. It is always a good idea to call your bank to inquire about its mobile check deposit requirements, before you engage in any mobile deposit.
How Does Mobile Check Deposit Work
So, how do mobile checks work?
Each bank’s mobile check deposit operates under the same principle, regardless of varying bank policies. This is how mobile checks work:
- You download your bank’s app.
- You go to the deposit online check.
- The check amount will be asked. You enter the amount as it is on the check.
- Then, you take pictures of the front and the back of your check on a dark background. Be sure to endorse the check- meaning sign the back of the check before taking the pictures.
- Finally, confirm everything is correct and submit.
Usually, this is free for most banks. It is how you mobile deposit a check on most banks’ mobile apps. It does not take long for your check to deposit through this method. Personally, one of my banks takes an hour to make funds available. The other takes about three days to release all the funds.
I advise you call first to know confirm your check can be accepted through your bank’s mobile check capture system. It helps you avoid a delay or a flag on your bank account. If you do not know about a flagged check, it tends to lock down your account to prevent fraud.
I do not know about you, but I hate it because it is a hassle to resolve.
If your check is not accepted by your bank, use one of these 8 best online check cashing apps. They can cash your checks within minutes for free or a little fee. I used some of them sometimes, because they do not care as long as your check is legitimate and endorsed.
How Long Does A Mobile Check Deposit Take?
A mobile check deposit takes a few minutes to three days to deposit. It depends on your bank’s mobile banking policy. Some banks deposit a percentage of the check the same day, then release the rest in three business days. Others just deposit your check, but will not release your funds until three business days later.
However, there are banks that will make your mobile check deposit available immediately. You can read my carefully selected 8 best banks with instant mobile check deposit. Who knows, your bank may make the list.
Again, this is where I would call my bank if I were you. This is given there are thousands of banks in the United States with varying policies regarding mobile banking. When you call your bank, it helps you avoid the consequences of depositing a bad check.
Is Mobile Check Deposit Faster Than ATM?
Check cashing with mobile banking apps is faster than doing it on ATMs. This is because it does not require much to do. I feel like with the ATMs, there is always a risk of messing it up or network downtime.
But hey, your check hitting your bank account depends on hour of the day. When you deposit after hours, which is usually after 3pm, the check will not hit until the next day. This is often with ATM deposits, but I have noticed a mobile deposit notifies you of a check deposit after business hours.
Is Mobile Deposit Faster Than In Person?
Yes, I think it is faster than in person. This is because you do not have to wait in queues. Queues drive me crazy. But if you have no issues with it, then good for you.
When it comes to processing time, I feel like the online deposit is faster too. The average time with my two banks is usually a few minutes, before I get the notification my check is accepted. Now, the question is whether the fund release time is the same as in person.
Personally, I think the fund release time after deposit is the same. This is because fund release depends on a bank’s policy, rather a bank teller’s effort to get the check release to you. Checks have to go through verification process, hence why the time the money is available to you is always the same.
How Large Of A Check Can You Mobile Deposit?
All banks have a limit on mobile check deposits. Each bank has a policy regarding the maximum amount you can deposit daily, weekly and monthly. For example, a mobile check deposit on current bank lets you do the following below:
- $500 per check deposit
- $1000 maximum per day
- $10,000 maximum per month
You will not be allowed to exceed this, because it is Current bank’s policy. Now, other banks have policy which differ from Current bank. Here is how you could find your bank’s mobile banking policy.
How To Check Mobile Deposit Limit
To check the mobile deposit limit of your bank, go to its website. Then, search for its terms and conditions on mobile banking. You can find it on the bottom of the website. The terms and conditions should have information on how much you can deposit on its mobile app.
Furthermore, you can just call your bank’s customer service line. I prefer this better than going on the website to look for it, although it takes time due to the call queue. This is because you get to talk to a real person who can look things up for you.
On the whole, depositing checks on a mobile device makes life convenient. This is especially, when you are a working class adult like me who does not have time to queue up in a bank. I highly recommend using your bank’s mobile check deposit feature, or other easy apps with instant check deposit and availability features because they will save you time and money.
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