Save Time By Depositing Money Through Your ATM (or Who In the Hell Deposits Money in an ATM?)

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I love ATM machines. Whenever I need cash, my money is just a few clicks away. But there’s one service on ATMs that I haven’t taken advantage of: deposits. And it looks like I’m not alone. While a staggering 90% of American households use ATMs to withdrawal money, only 29% take advantage of the deposit service at ATMs.

I don’t know what it is. Something about putting my cash or a check from my grandpa in an envelope and placing it in a machine gives me pause. What happens if I deposit money and some jerk drives a beat up Chevy van into the ATM in order to steal my birthday money? I don’t think I’m the only one who has that fear. However, like most fears, I’m sure it’s irrational. I haven’t read about any ATM busts in the paper since…. come to think of it, I’ve never heard of an ATM deposit heist. I guess the robbers think no one else uses ATM deposits either.

Another reason I think people don’t take advantage of the ATM deposit service is that their money won’t be available as quickly if you do your deposit with a flesh and blood teller. Thankfully, banks are working on technology that should speed the time you deposit money into an ATM and the time it appears in your account.

I really need to get over my angst over ATM deposits. I hate going to the bank. Whenever it’s open, I’m busy and whenever I’m free, it’s closed. When I do get a chance to get over to the bank, the line is huge. So, I wait 20 minutes so I can do a transaction that takes 2 minutes. Depositing at an ATM could really save me some time.

How to make an ATM deposit

OK, we all want to make deposits using the ATM. How do we do it? Here’s a short little guide to losing your ATM deposit virginity.

1. Find which ATMs have deposit service. Because so few people take advantage of ATM deposits, many banks have limited or completely gotten rid of the service. Call your bank to find out if they still have the service at their ATM’s and if so at which ones.

2. Swipe your ATM card and enter your PIN.

3. Instead of selecting WITHDRAWAL, select DEPOSIT. I know. It’s going to be hard after years of muscle memory training selecting withdrawal. That’s why focus is so important here.

4. Get an envelope and fill out the requisite information.

5. Insert cash in envelope.

6. Place envelope in deposit compartment.

7. Select complete transaction.

8. Walk away.

Total time: 2 minutes. 3 if you accidentally hit WITHDRAWAL the first time.

So, I’m curious. How many of you make use of the deposit service at the ATM? Please take part in this little poll I’ve set up:

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33 Comments

1. SingleGuyMoney on 10.01.2008 at 16:28 (Reply)

   I use the ATM all the time. I don’t even remember the last time I went inside the bank. I use Bank of America where you can depost cash and checks without an envelope. You get a printout of the check on your deposit slip. If you deposit cash, you get an itemized printout of the bills. I absolutely love this feature.

2. JB on 10.01.2008 at 16:43 (Reply)

   I regularly deposit money at the ATM because I usually can’t make it to the bank during business hours. Used to be hesitant but has since gotten over my fears. For starters I only deposited checks I know I could have gotten ‘replaced’ from work or an individual. Now, I even deposit small amounts of cash, I think it’s a really safe feature to use. Once I miscounted the deposit (stupid, I know) and the bank realized and corrected it by crediting my account the discrepancy.

3. Liz on 10.01.2008 at 16:57 (Reply)

   Until 3 weeks ago, my husband and I regularly deposited money in our bank’s ATM. Being law students, we didn’t have the time to run into the bank during banking ours. However, a couple weeks ago, we put $500 cash (a very kind gift) into our account through the ATM (one that uses an envelope). A couple days later, $450 was removed from our account without explanation. After several calls and about an hour and a half on the phone with Bank of America, we found that the bank had recorded that we only deposited $50. We established a claim (which was to be investigated and solely decided by the bank - basically, they decided whether or not they felt like returning our money), and it’s only just been the day before yesterday that it was found in our favor. At that time, the bank also “found” a $50 check from someone else with that $450, and removed $50 from our account. I’ve now made a couple follow-up calls about this last unwarranted withdrawal - at the cost of several hours on the phone. Just be careful when depositing cash or checks you can’t prove, at least when using an envelope ATM. This has been a huge hassle and a waste of time. We’ll be depositing our money with a teller, at least until our ATMs are updated to not use envelopes.

4. Shannon on 10.01.2008 at 18:35 (Reply)

   Wow, I’ve never heard of anyone having problems with ATM deposits. I’ve been doing it exclusively for YEARS! Granted, I am from a fairly small town and trust my bank (a local bank, not a huge corporation), but I never even gave it a second thought until today. I never understood why anyone would wait for tellers for anything. I guess I understand now, but I’ll keep using ATMs until I have a problem. They’re so much more convenient!

5. Lisa on 10.01.2008 at 18:41 (Reply)

   Why would you take the time to fill out the deposit envelope after you have inserted your ATM card in the machine? At every ATM I’ve seen, the envelopes are not held hostage inside the machine, but are freely available next to the machine, and often on a ATM lobby counter as well. Take some envelopes with you and get your deposit ready in the privacy of your own home; at the very least, get your deposit ready before you put your card in the machine.

6. Brett McKay on 10.01.2008 at 18:45 (Reply)

   Wow! I’m really surprised that so many people use the deposit service at the ATMs. I guess the answer to my question in the post title is lots of people.

   I can’t believe I’ve been wasting my time away standing in line at the bank like a chump….

7. Elizabeth on 10.01.2008 at 19:15 (Reply)

   I was surprised by this post since I ALWAYS have deposited my money through the ATM since I first had a debit card. I didn’t think people still went in the bank! I’ve had one friend who got screwed like the above comment where the bank said she deposited less than she did, but with Bank of America’s new instant check-scan ATMs (no envelopes), those mistakes are SO easy to catch.

8. Dreamy1 on 10.01.2008 at 19:53 (Reply)

   I always deposit my paper checks into the ATM. I get out of work too late sometimes to catch the bank on the same day business. The bank I use, their ATM is on the same day business until 7PM. So in order to make the deposit count, I use the ATM. Love this feature that my B&M bank offers. I can’t believe that only 29% of the ATM using population does it. I thought it was far more.

9. Clever Dude on 10.01.2008 at 19:54 (Reply)

   Just like commenter #1, I use BoA’s ATM to deposit checks without the envelope. Very simple and very quick. The last time I went to the teller (and it wasn’t for years before that) was when we cashed out some of our CDs and I didn’t want to deposit such large checks through the ATM.

10. Christine on 11.01.2008 at 07:13 (Reply)

    My bank is 100% ATM - it’s a “teller-less” bank, and therefore has lower fees, etc. I switched over about 4 years ago and have absolutely no regrets.

11. Amber on 11.01.2008 at 08:45 (Reply)

    I’ve used the ATM deposit exclusively for a long time, even with huge checks that I probably should have gone inside for. I love it because I can do it anytime and because (at my bank, at least) the deposit shows up immediately on my online banking site. Unfortunately, we’ve had a couple of problems. The most recent was that my paycheck was lost. Just lost. I called and the whole thing was sorted out within a couple of days, so it didn’t end up being a huge deal. I think we’re going to be going inside for the next little while, though.

12. Michelle on 11.01.2008 at 10:15 (Reply)

    I use BofA’s ATMs to deposit cash and checks all the time - I can’t remember the last time I went to a teller for personal banking.

    One good feature about these scanning ATMs is that it guesses what the amount on the check is, but if it’s illegible, you’re able to manually enter the amount that the check is for - no worries about bad handwriting preventing you from using the ATM for check deposits.

13. thisisbeth on 11.01.2008 at 12:11 (Reply)

    I’ve never been to the credit union I use as my main bank (I’ve driven by it once, though). If I want to deposit money, it’s done through an ATM.

    I presume that this is true of all banks: The transaction is kept track of through entering it into the ATM–that is, you enter how much you’re depositing, just like you’d enter how much you’re withdrawing. If the ATM is the “victim” of a break-in, your transaction has been recorded. I would presume the bank would just have to trust you that you got the total correct. The money is usually not available until the bank gets the money, though. (I made a math mistake once adding checks–I noticed as I was entering it into my register when I got home–but the bank caught the error and corrected it when the total was depoisted.)

    In your steps: fill out the enveolope before you put your card in the machine. If there’s a line, people will thank you.

14. Liz Busby on 11.01.2008 at 13:01 (Reply)

    This might be just a credit union feature, but my ATM deposits are available instantly (up to $300 worth, I think). Not good enough for a paycheck, but enough for the present from Grandma. Yet another reason credit unions rock.

15. strange bird on 11.01.2008 at 15:02 (Reply)

    I used to only make small deposits ($100 or less) at ATMs, because many years ago I’d deposited two checks in one envelope (which my bank allows) and the bank lost one of them, apparently, and withdrew the money from my account. I’d thought if it’s a smaller amount, I’ll be better able to deal with bank errors.

    I now have a friend who has worked at a bank for many years and she insists that if you ever have checks to deposit to do it at the ATM. Tellers lose checks sometimes, and while you will eventually get your money back (although you might have to get a new check from the original writer), it happens less often with ATMs because there are more ways of checking work with that system.

    I still see a teller for large cash deposits, though. Not that they happen very often.

16. Single Ma on 11.01.2008 at 15:38 (Reply)

    I don’t care if someone stole the entire ATM machine. As long as I have my receipt that shows the amount of the deposit, it doesn’t bother me.

17. snow_drops on 11.01.2008 at 16:32 (Reply)

    Uhm… doesn’t everyone deposit money via ATM? Everyone I know does this. It may take longer to “cash” it, but I figure that if I don’t do this, then it will take me forever to go see a teller anyway. So better to deposit it right away than to spend it buying “suddenly necessary” stuff (for me anyway).

18. Elizabeth on 12.01.2008 at 10:20 (Reply)

    I never use ATM’s. When I need cash, I make a withdrawl from the First Bank of Husband. For everything else, I pay with a credit card (that’s always paid in full at the end of the month). The very idea of paying a fee to access my own money makes me see red. As for deposits, again no ATM’s. There’s never a line at my bank and the deposits are processed immediately. Besides, I don’t even know my PIN. Back in my youth, I did use ATM’s and thought they were great because I didn’t have to keep the same hours the bank does. Now that I’m an old fogey I keep bankers hours too.

19. Marilyn on 12.01.2008 at 17:28 (Reply)

    The only time I don’t deposit through an ATM is when the ATM is out of service or the line is shorter inside! I never worried about someone driving a van into the ATM after I walk away… so thanks for that…

20. paulette on 14.01.2008 at 10:39 (Reply)

    If you are thinking of bestplace to save your money I will not suggest the ATM. It is because its very accessible for you to get the cash anytime. I still prefer that you keep your savings in a time deposit or passbook type savings.

21. BD on 17.01.2008 at 09:38 (Reply)

    I use Wells Fargo, which has recently gone envelope-free. I do make deposits at ATMs, but I have my paycheck set to direct deposit, so I really only go every once in a while for the gifts from grandma.

    I once had a problem at a Bank of America ATM: the machine swallowed my first paycheck (before I had direct deposit set up) - which I really needed - but “cancelled” the transaction. The money showed up just fine the next day anyway, just like customer service said it would.

22. Emily Starbuck Gerson on 18.01.2008 at 10:52 (Reply)

    I love using Bank of America ATMs to deposit my checks — it’s so quick and easy, and especially nice when you want to do it after business hours. My boyfriend and my brother refuse to do it. They don’t trust the machines and would rather have a human do it. But I figure as long as you print out a receipt, you have evidence of the transaction, and I’ve always had great customer service, so I’m not worried.

23. Bill Koch on 19.01.2008 at 05:53 (Reply)

    I just made my first ATM deposit today. I didn’t know how it worked, so I was flying blind and didn’t have the envelope/etc. prepared beforehand. It was 6AM in the morning, but with my luck, someone pulled up behind me as I was about 2/3 of the way through the process.

    I would be doing it more often in the future, but I just switched over to direct deposit from my employer.

24. Andrea on 20.01.2008 at 11:31 (Reply)

    I deposit through ATM’s every single time. I bank with President’s Choice Financial in Canada, and there are no physical banks that I could go to even if I wanted to.

    Up to $500 is available immediately, with a 5 business day hold on everything else (which I admit can be annoying at times, but it just takes a bit more careful budgeting)

25. Paula on 21.01.2008 at 09:04 (Reply)

    I always use the ATM for deposits, unless the check is so large I have questions about the hold they will slap on it. Count me another satisfied BofA customer who loves having the ability to deposit checks and cash that are scanned in without the envelope. My cutoff date is 8 pm for same-day credit, so I get $100 immediately, and the rest after midnight as long as there’s no hold (generally only on checks over $1000 from out-of-state.)

26. SavingDiva on 21.01.2008 at 14:17 (Reply)

    I have to use the ATM for deposits because the bank is never open when I can go….which is problematic because I need to deposit a lot of change!

27. grover on 28.01.2008 at 01:21 (Reply)

    Slightly different perspective, because it’s coming from the other side of the world…

    Here in Hong Kong, the major banks like HSBC or Hang Seng Bank have 3 extra machines in addition to ATMs:

    Cash Deposit
    Check Deposit
    Checkbook

    The cash & check deposit machines are pretty straightforward. They scan whatever you deposit, then give you a receipt. The check machine will print images of the check directly on your receipt.

    The checkbook (”passbook”, over here) machine will automatically print your most recent transactions.

    These machines are only seen at high-traffic areas, but they do save tons of time. I expect there are only a few cities in the US where this technology would make sense. I guess I’ll just enjoy it while I’m here.

28. jcompton on 28.01.2008 at 11:26 (Reply)

    I am a long-time ATM depositor but in the past couple of months, I have started to notice banks rejecting deposits from non-customers. (My chosen bank is further from my house than the bank within walking distance, so I used to stroll up to the nearest one to deposit checks.)

    One of the banks refusing to take non-customer checks is the one with its ATMs and minibanks inside my grocery store chain, which is a real thumb in the eye for its supposed customer convenience. I’ve had the same check in my coat pocket for a week now because every time I cleverly try to deposit it on a round of errands, I am thwarted by the ATM.

    Lame.

29. Brett McKay on 29.01.2008 at 10:05 (Reply)

    jcompton-
    That is lame that banks are rejecting deposits. I can see how that would seriously cramp your style.

30. Patty on 01.03.2008 at 10:42 (Reply)

    I am a saver but I will never put a cash deposit in an ATM. I don’t want to get into any dispute over if I did or didn’t put the correct amount into the envelope.
    I have had a dispute in the past and believe me …you don’t want to go there. With the banks you are always the loser. Who has the energy for that cr@P?
    You have to choose your battles in life and I choose to deposit at the counter.

31. TRUPTI PAWAR on 06.03.2008 at 05:16 (Reply)

    Please provide me the details that how to fill up the cash deposite form send me the formate of the filled(old)form in my email id.
    thanking you,
    Trupti Pawar

32. ATM Deposits « Searching for Crabshells on 11.06.2008 at 01:04

    […] Searching for Crabshells « Justice, Scalia and ‘The Merchant of Venice’ ATM Deposits June 11, 2008 A post on The Frugal Law Student says, “While a staggering 90% of American households use ATMs to withdrawal money, only 29% take advantage of the deposit service at ATMs.” I don’t belong to the 29% of people who do use ATM machines to deposit money. What if the envelope gets lost? If the bank officials count the money in it incorrectly? If someone misappropriates the money somewhere along the way? It may be irrational but it’s still how I feel. I like being able to deposit money by handing it over to a real person, by seeing that person count the money in front of me and having the deposit stamped in my receipt book. However, I’ve been thinking that depositing cheques in the ATM may not be such a bad idea… after all, the only problem that could occur there is if the bank loses it and, quite honestly, I’ve never heard of any bank do that. Perhaps it is time for me to force myself to get over at least some of my ATM angst. Link: http://www.frugallawstudent.com/2008/01/10/save-time-by-depositing-money-through-your-atm-or-who-in-… […]

33. José on 12.06.2008 at 10:32 (Reply)

    I feel like an idiot, I had no idea this was possible and there I am standing in line all the time. Thank you so much, fun article.

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