Debit card. Some online banks provide their deposit customers with debit cards that can be used to electronically pay for purchases, similar to credit cards but using funds in their accounts and involving no interest charges. Many retail merchants, such as grocery stores, will allow customers to get cash back over and above the purchase amount when using a debit card. Some merchants charge fees for this but many will provide up to $100 cash back without cost.
ATM transaction. Some online banks belong to automated teller machine (ATM) networks that allow their customers to make withdrawals from their accounts using bank-issued debit or ATM cards. Some other online banks that don’t belong to ATM networks will reimburse customers for any ATM fees incurred for withdrawing cash.
Paper check. If a debit card cash-back or ATM transaction won’t work, you can ask your online bank to mail you a paper check for the amount of cash you need. Then you can cash the check at a number of locations, including major retailers. You may have to pay a fee to cash the check. And you’ll need proper identification and have to wait for the mail to deliver the check using this approach.
Account transfer. If you have another account at a bricks-and-mortar bank, you can order your online bank to transfer the funds you need to the traditional account. Usually, this won’t cost you anything and it will only take a day or two for the funds to show up in your traditional account. After that, you can use an ATM or go to one of the traditional bank’s physical branches and withdraw the cash in a transaction with a human teller.
Wire transfer. If you need cash faster than the day or so, you may want to consider instructing your online bank to transfer the funds via wire transfer. This can sometimes get the money into your traditional account and available for withdrawal somewhat more quickly, but it will cost anywhere from $10 to $30.