How to Withdraw Cash from Online Banks: 6 Effective Ways

With technology continuously becoming increasingly advanced, many people are switching to cloud-based banking, otherwise known as virtual banks.

There are many benefits to choosing this type of banking over a brick-and-mortar option. 

Here are some reasons people are making the switch: 

• Online banking offers convenient access anytime and anywhere with an internet connection.
• You can get access to mobile check deposits, which allows you to deposit checks with clicks.
• Many online banks offer 24/7 help via chat
• They generally offer higher interest rates
• Online banks often have lower fees
• Online financial technology can be better for the environment - with less paper and no resources needed for physical branches.

While these features offer many advantages, one major downside to online banking is the inability to withdraw cash directly from your smartphone, tablet, or laptop.

However, there are still plenty of ways to access cash while using online banking. This article explores all the methods online-only bank customers can use to get cash in hand. 

🔍 Tip: Dive deeper into the comparison between online and traditional banking.

6 Ways to Withdraw Cash From Online Banks

To put it simply, you can get cash with an online bank account the same way you would with a traditional account that you access in person. Additionally, we'll also cover a unique method exclusive to online banks.

1. Use Your Debit Card at an ATM 

Most online banks allow you to withdraw cash from ATMs within their network or their partners', typically without ATM fees or with only minimal charges. 

Using an ATM outside your bank network may incur a cash withdrawal fee, usually ranging from USD 2 to USD 6, averaging around USD 4.73.

In order to use this way of getting money in hand, you’ll need an ATM card or a debit issued by the online bank. Simply put your physical card in the ATM and follow the prompts on the screen to get cash out quickly.  

Alternatively, you can also use a cardless ATM withdrawal. This feature allows you to withdraw cash through the online bank's mobile app, eliminating the need for a physical debit card. While not all ATMs have this feature, many major banks offer it.

Connecting to a cardless ATM is possible by generating a withdrawal code through your mobile app, scanning a QR code on the ATM screen, or tapping your phone against the ATM's contactless symbol to access your digital wallet with linked debit cards.

Another thing worth noting is that many banks have a maximum cash withdrawal limit per month, so reviewing the policy is advisable.

You can also use credit cards to get cash at ATMs, known as a cash advance, which means taking a loan from the bank. However, this incurs extra cash advance fees on top of ATM fees and higher interest rates than regular purchases. Additionally, it may lower your credit score.

🔎 Tip: Some online banks provide out-of-network ATM reimbursements. Opting for a bank that offers unlimited reimbursements can be advantageous if you frequently withdraw cash.

2. Take Out Cash Back While Shopping 

If you’ve ever used your credit or debit card while running errands, you’ve likely been prompted with a cash back screen. 

This is a convenient way to obtain cash for free or for a minimal fee during debit card transactions at retail stores, especially useful if you need small bills or change. 

Here's how it works:

1. Select Debit - Choose 'Debit' as the payment method when you checkout in a retail store that offers cash back services, such as Kroger, Walgreens, or Costco. Then, swipe or insert your debit card into the point-of-sale terminal and enter your PIN.
2. Request Cash Back - If the store offers cash back, you can request it on the terminal. Enter the amount of cash you want.
3. Finalize Transaction - The combined total of your purchase and the cash back will be subtracted from your bank account, with the cash amount included in your receipt. The cashier should be handing you the physical cash you requested. 

While this method typically doesn't come with any fees or incurs very small ones if they do, it's common for stores to have cash back limits, usually around USD 100. 

If you're unsure about the availability of services or the limits that apply, it's always a good idea to ask the store directly.

3. Transfer Money to a Physical Bank

If you have a linked account at a physical bank, you can easily transfer funds from your online bank account to your physical bank account within clicks. Then, you can withdraw cash from ATMs associated with your physical bank.

All you need to get this done is your routing and account numbers.

Each bank may have slightly different procedures, so don't hesitate to reach out to your online bank's customer service for guidance if you're unsure.

🔎 Ever wonder why bank transfers take so long? Read more to find out the reasons.

4. Utilize Wire Transfers 

In most cases, you can easily contact your online bank and request a wire transfer to your physical account.

The majority of banks do charge a fee for using wire transfers, ranging anywhere from USD 10 to USD 45.

In turn, it's one of the safest ways to send funds around the world.

Depending on banks, the money can take minutes or up to 3 days to arrive.

🔎  Tip: Learn all about bank fees and why banks charge you 

5. Write a Check

If your online business checking account or money market accounts include checks, you can withdraw cash by writing one.

Many online checking accounts offer the option to order a checkbook through their online dashboard or request check issuance online or by phone. You can send this check to another individual for payment purposes or have it mailed to your address as a withdrawal from your account.

If the bank sends you a check, you'll need proper identification and will have to wait for the mail that delivers the paper checks.

You can then cash checks at:

• Traditional banks or credit unions, although many may not offer check cashing services if you're not their customer. Fees typically range from USD 5 to USD 10.
• Check-cashing stores usually incur higher fees ranging from 1% to 12% of the check amount.
• Major grocery stores or retail stores, such as Walmart. They offer lower fees, around USD 3 to USD 6, depending on the amount.

📝 Tip: Some retailers only cash preprinted checks, not handwritten ones, so it's best to inquire beforehand.

6. Talk To Your Bank

One of the biggest benefits of online banking is the many different ways you can connect with a representative. Even though you do your banking online without access to any physical branch, you can still enjoy personal assistance and the personal touch just like a traditional bank. 

Online banks often offer 24/7 chat services, phone numbers, and video chat options.

Whether you need to make cash withdrawals or resolve an account issue, such as unfreezing your bank account or inquiring about account closure, you can communicate with a bank representative to find the right solution.

Depositing Cash Into an Online Bank 

Depending on the specific bank you’re working with, you may be able to use some of the same methods you use for withdrawing cash to put money into your account.

If you need to put physical cash into your online bank accounts, you can: 

• Find a deposit-accepting ATM
• Transfer cash from a brick-and-mortar bank to your online-only account
• Get a money order 
• Give a friend or family member the cash and have them write a check. 

However, some online banks may limit deposit options to only ACH transfers, wire transfers, and payment app transfers.

Alternative: Statrys

Are you looking to take advantage of the virtual banking trend for your business?

Create an account with Statrys today and get a fully digital payment experience in less than 48 hours, with no minimum deposit required. Plus, withdrawing cash is easy with our Mastercard® debit card. 

Explore our business account details below: