USAA Bank allows you to deposit checks using the iPhone. USAA Bank already has an App on the iPhone as do most Banks but USAA Bank is the the first to allow their customers to simply take a picture and send in the deposit. This feature will only be available in San Antonio, TX initially and then grow depending on the results from the first dispatch.
Customers take a picture of the front and back of the check with the iPhone's camera and send it directly to the clearing system. The paper check can then be thrown away or filed for your records.
Check at the App Store this week for updates to see if you are able to deposit your check as well.