The Ins and Outs of Online Check Deposits

Woman deposits check using mobile phone

Your smartphone camera does more than take selfies. It can also be used to snap pictures of paper checks for mobile deposit, a way of banking that’s growing in popularity in America.

According to a Federal Reserve survey, 38 percent of U.S. banking consumers have made deposits with their smartphones, and that number is only likely to grow as the technology and safety do, too.

If you’ve never deposited a check using your smartphone before, see how simple, safe and convenient it can be. Read on to learn more about mobile check deposit.

When Can I Access Funds Deposited From Mobile Checking?

Though the idea of taking a snapshot of your check might suggest immediate access, using the mobile deposit method does not guarantee your money for instant use.

According to Federal Deposit Insurance Corporation and its Expedited Funds Availability Acts, only the first $200 of a mobile deposit must be made available on the next business day. Any amount above the $200 threshold is typically available to you within two business days. Some financial institutions offer same-day deposits, but others still may take longer to deposit the full amount of a check or checks into your account.

It might seem like an inconvenience, the time between deposit and access is for the best. While federal-issued checks and wire transfers can get into your account more quickly, personal check deposits require a thorough quality check by your financial institution to help protect you against fraud.

Check the terms of your financial institution for a better idea of the timeline you can expect. Using money that’s not yet in your account due to deposit complications will likely mean having to pay fees and additional costs.

At Minster Bank, the process is simple. When you make a mobile check deposit before 3 p.m., the funds are normally available in two business days.

Related: Save Time and Energy With Mobile Check Deposits >>

Mobile Deposit Requires An Extra Endorsement

To better ensure the safety of using mobile deposit, the Federal Reserve established a new endorsement requirement on July 1, 2018. Accord to the FRB, any check that is to be deposited via mobile device must have the phrase “for mobile deposit only” written beneath the signature line on the back of the check.

Click here for an example of how to endorse your check for mobile deposit.

The objective is to minimize fraud and the prevalence of accidental double depositing, protecting you and the financial institution in the process. Some financial institutions may require you to add “at (institution name)” or “for (institution name) mobile deposit only,” so it’s best to check the terms and requirements of your mobile deposit program first.

Hang on to the Mobile-Deposited Check Before Trashing

After you make the deposit, keep the paper check handy for two weeks in case of problems with your transaction. Inscribe the date and “mobile deposit” on the check so that you don’t make the mistake of attempting to deposit it twice, which can lead to you having to pay a fee.

When the two weeks have passed, shred the paper check to protect your private information. If you want to hold onto it for longer just in case, make sure you keep it somewhere secure like a fireproof safe or lockbox.

Get Started Using Mobile Check Deposits

Mobile check deposit means never having to run to the ATM to put money in your account again, which is a great convenience. Knowing how to use the system and process safely and correctly ensures fewer headaches and less hassle.

To get started, enroll in online banking and then download the Minster Bank Mobile App on the App Store or Google Play. From there, just log in and follow the steps on making a deposit.

We’ve also put together a demo video and mapped out each step for you — just click the link below to get started using mobile check deposits.

Get Started With Mobile Deposits


Published by Minster Bank

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