Where you can deposit a money order

You can deposit a money order at most banks, credit unions, and check-cashing services. Your own bank or credit union is usually the fastest and cheapest option — many do it for free as part of your account. Some grocery stores and pharmacies with financial services counters also accept money order deposits, though they may charge a fee or require you to be a customer.

If you don't have a bank account, check-cashing businesses will deposit money orders directly to a prepaid card or give you cash, though they typically charge a percentage of the amount (usually 1 to 3 percent). The Post Office itself does not deposit money orders into accounts, but postal employees can tell you which banks and credit unions nearby accept deposits.

Key Takeaways

  • You need to endorse the back of the money order with your signature before depositing it, just like a check.
  • Bring the money order and a valid ID to your bank or credit union; most deposits take one to three business days to clear.
  • If you're depositing someone else's money order, you may need to ask them to sign it first or have them present at the bank.
  • Mobile deposit (photographing the front and back through your bank's app) works for money orders at many banks, though some still require in-person deposits.

How to endorse a money order

The back of the money order has a line marked "Endorse here" or similar. Sign your name on that line exactly as it appears on the money order's front. Do not write anything else on the back unless your bank specifically asks you to (some banks ask you to write your account number, but most do not).

If the money order is made out to someone else and they want you to deposit it for them, they must sign the back first. Some banks will not accept a money order signed by someone other than the person whose name appears on the front, so ask your bank before you ask the other person to sign it. If the money order is made out to two people (for example, "John Smith and Jane Doe"), both people usually need to sign the back.

Depositing in person at your bank or credit union

Bring the endorsed money order and a valid ID (driver's license, passport, or state ID card) to any branch of your bank or credit union. Hand them to a teller and tell them you want to deposit the money order. The teller will scan or photograph it, verify the amount, and ask which account you want the money to go into.

Most banks deposit money orders the same day you bring them in, though the funds may not be available to withdraw for one to three business days. Ask the teller how long it will take for the money to clear. If you're depositing a large money order (over $5,000), the bank may hold it longer or ask questions about where it came from — this is standard practice and not a sign of a problem.

Mobile deposit for money orders

Many banks now allow you to deposit money orders through their mobile app by photographing the front and back. Open your bank's app, find the deposit or mobile check deposit option, and follow the prompts to take clear photos of both sides of the endorsed money order. The app will tell you if the image quality is too poor to read.

Not all banks accept mobile deposits of money orders yet — some still require you to bring them in person. Check your bank's website or call before you try, so you know what to expect. If your bank does accept mobile deposits, the money usually appears in your account within one business day, though it may take longer to fully clear.

Depositing at check-cashing services

If you don't have a bank account, check-cashing businesses will cash or deposit money orders for a fee. Bring the endorsed money order and a valid ID. The cashier will verify the amount and ask how you want the money — as cash, on a prepaid card, or transferred to another account.

Fees vary widely, so ask before you hand over the money order. Some charge a flat fee (for example, $2 to $5), while others charge a percentage of the amount (typically 1 to 3 percent). A $500 money order could cost you $5 to $15 to cash, depending on the business. If you plan to deposit money orders regularly, opening a basic bank account is usually cheaper in the long run.

What to do if the money order is damaged or unclear

If the money order is torn, stained, or hard to read, your bank may refuse to deposit it. In this case, contact the issuer — usually the Post Office, a bank, or a money order company like Western Union or MoneyGram. You'll need to provide proof of purchase (your receipt) and explain what happened. The issuer can verify whether the money order was cashed and issue a replacement if it wasn't.

The replacement process can take several weeks, so keep your receipt in a safe place. If you lost the receipt, the issuer may still be able to help, but it will take longer. Never try to alter or repair a damaged money order yourself — banks will not accept it, and it could be considered fraud.

Depositing money orders made out to a business

If the money order is made out to your business, the process is the same as for personal deposits, but you'll need to endorse it with your business name and your signature. Some banks ask you to write "For deposit only" and your business account number on the back as well. Bring the money order, your business ID, and a valid personal ID to your bank.

If you're depositing a money order on behalf of a business but the account is not in your name, bring a letter from the business owner or manager authorizing you to make the deposit, along with your ID. Different banks have different rules about this, so call ahead and ask what documents you need.

Frequently Asked Questions

How long does it take for a deposited money order to clear?

Most money orders clear within one to three business days. Some banks make the funds available the same day you deposit them, but you may not be able to withdraw the money until it fully clears. Ask your teller for the exact timeline for your bank.

Can I deposit a money order without a bank account?

Yes. Check-cashing services, grocery stores with financial services counters, and some pharmacies will cash or deposit money orders without requiring an account. You'll pay a fee, usually 1 to 3 percent of the amount. A basic savings account at a bank or credit union is often cheaper if you plan to deposit money orders regularly.

What if I lost the money order before depositing it?

Contact the issuer (the Post Office, bank, or money order company) with your receipt. They can verify whether it was cashed and issue a replacement if it wasn't. The process typically takes several weeks. If you don't have the receipt, the issuer may still help, but it will take longer.

Do I need to bring anything besides the money order?

Bring a valid ID (driver's license, passport, or state ID). If you're depositing on behalf of someone else or a business, bring a letter of authorization from the account holder or business owner as well. Call your bank ahead of time if you're unsure what documents they need.

Can I deposit a money order made out to someone else?

Only if they endorse it first by signing the back. Some banks will not accept a money order signed by anyone other than the person whose name appears on the front. Ask your bank before you ask the other person to sign it.