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:

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.

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.

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