New Smartphone App Allows You to Virtually Deposit Checks

Investment banking has just gotten a little easier!  We all love the convenience of online banking via the iPad, computer and Smartphone from savvy applications or even text messaging, but now Charles Schwab, a national leading investment services and bank has released a new mobile app that allows consumers to deposit their checks into their banking or investment accounts with their phone.

Now, I am sure you are asking how does this process work and is it safe?

After downloading the free application to your iPhone or Android phone (sorry Blackberry users) and registering your account with the app, you can select which account deposits will go to. Then simply take a photograph of the front and back of a check with your Smartphone and follow a few steps to send the deposit on its way in minutes.

According to the Wall Street Journal, Schwab will send a receipt email to you acknowledging the check deposit within four hours if it’s electronically deposited before 4 p.m.  If the check is deposited after 4 p.m., you will receive your receipt email the next business day.

With innovative technology leading the forefront of how people manage their finances, this Smartphone app will eliminate the rising costs associated with physically depositing a check. It is important to note that deposits by Smartphone won’t actually become available in your account any faster. As with most check deposits, the funds become available within a few days of the deposit, based on regulations and financial institution policies in your specific geographical location.

Now that you know how the process works, it is important to take the proper safety precautions to avoid identity theft.  Once your check has cleared and the funds are available in your account, Charles Schwab recommends that all customers shred or tear up the physical paper check and dispose of it.  Also, the app has been designed so that if clients accidentally try to deposit a check for a second time, that an error message will appear and not allow you to do so.

If you do investment banking with another bank like J.P Morgan Chase, PNC Financial Services Group or U.S. Bancorp, they also offer a similar mobile phone application that enables mobile check depositing as well.