Cash on Hand? The Biggest Online-Only Bank Just Made It Easy To Deposit Your Money

How an Online-Only Bank Is Suddenly Making Room for Cash

Ally Bank, widely regarded as the largest online-only bank in the U.S., is adding something that virtual banks have long struggled to offer: a way to deposit physical cash. Until now, if you received cash tips, cash gifts, or certain side-hustle payments, you typically had to deposit that cash into another bank before transferring it to Ally.

It’s not surprising that online-only banks generally avoid cash, since handling physical money requires branches, armored trucks, and higher operating costs—the opposite of what makes digital banking efficient. And while more and more transactions are going cashless, people still find themselves with physical money—occasionally for some, and regularly for others.

To solve this, Ally has partnered with Walmart to provide an in-person deposit option for its checking account customers. The idea is simple: You start in the Ally app, finish at Walmart, and there’s no fee for the transaction. Plus, it’s available at any Walmart retail store nationwide.

“Our new ability to add cash gives customers more control and flexibility, allowing every dollar—digital or physical—to be effortlessly integrated into their financial plan,” said Lindsay Sacknoff, head of consumer banking at Ally.

How the New Cash-Deposit Option Works

Ally’s new cash-deposit feature starts in the bank’s mobile app. Open your Spending Account (that’s Ally’s name for its checking account) and choose the option to add cash. You’ll receive a unique barcode. At Walmart, head to the Money Center or Customer Service Desk. An associate will scan your barcode and accept your cash. Note that you may be asked to show your ID or provide your phone number.

After you hand over the cash, it’s added to your Ally Spending Account, where it typically becomes available within minutes. You can add between $20 and $1,000 per day per Spending Account, up to five times per month.

How Ally’s Spending Account Stacks Up Against the Competition

Ally’s Spending Account offers plenty of conveniences, but like most checking accounts, it doesn’t pay much interest. The APY is 0.10% or 0.25%, depending on your balance—fine for everyday money, but not a place to keep larger savings.

For funds you don’t need on a daily basis, Ally’s separate Savings Account is the better fit, since it currently pays 3.30% on your balance. That’s well above the national average of 0.39% and far higher than the near-zero 0.01% APY you’d earn at Chase, Bank of America, or Wells Fargo.

But there’s a tradeoff: The highest-yielding savings accounts are almost exclusively online banks, which don’t offer an easy way to deposit physical cash. That makes Ally a rare option that can bridge both needs—earning a competitive (though not top) yield while providing a convenient cash-deposit path via Walmart.

For many people, a hybrid approach may be the most effective. You can use Ally’s Spending Account—and possibly its Savings Account—for everyday banking and cash-deposit needs, but then open a separate high-yield savings account elsewhere to earn a top APY on a portion of savings you don’t need to touch.