Night Depository

What Is a Night Depository?

A night depository is a secured bank drop box where accountholders (typically small business owners or employees) can deposit their daily cash, checks, and credit card slips outside of normal banking hours (generally between 9 AM and 5 PM). The bank will collect the deposits and credit them to the client's account on the accompanying business day.

Night Depository Explained

Despite the fact that they might appear to be somewhat curious — while perhaps not tremendously old — in our undeniably cashless, versatile pay society, night depositories truly do in any case fill a need. Numerous small businesses service suppliers actually deal mostly in cash and checks. Night depositories give extra security to these merchants, since it liberates them from keeping money at their business location overnight, where it very well may be defenseless against theft. Automated teller machines (ATMs) can fill this need too, however they limit the physical amount of paper each can deposit in turn, and of course, they don't acknowledge coins. In the event that the client has a large bundle of bills or checks, the night depository is many times more useful.

Businesses need a commercial or business account to utilize a bank's overnight deposit facility. Generally, after a client opens an account, the bank will give them a key to open the secured drop box on the outside of the building at that branch. The bank will likewise expect that checks, cash, credit and debit card receipts be put in a special lockable zippered bag, alongside deposit slips.

A manager or specially prepared commercial teller collects the bag from the depository the next business day. The contract between the merchant and the bank, called the night depository agreement ,figures out who opens the bag and counts its items: Normally, clients can direct that the bag be unopened until they are available at the bank. Of course, this defers the posting of the funds to the account, however it speeds the resolution of any accounting errors and forestalls debates. On the off chance that a client doesn't opt to be available, the bank opens the bag and processes the night deposit during its next business day, as per Federal Deposit Insurance Corporation regulations.

Banks frequently expect that you pay a month to month fee for night depository services.

Genuine Example of a Night Depository

Commercial banks that take care of small business underline their night depository services. First International Bank and Trust, a self-depicted community bank found situated across North Dakota, central Minnesota and the greater Phoenix, AZ area, publicizes its night depository service on its website. "Night deposits are accessible 24 hours per day, seven days seven days all things considered First International Bank and Trust locations," it announces.

Liberty Bank, which has locations in New Orleans, Kansas City, Detroit — alongside smaller urban communities in Mississippi, Alabama, and Illinois — likewise promotes the "low annual fee" for its night deposit services at numerous locations. "You can safely drop off checks and cash for deposit whenever, day or night. At the point when the bank returns, your deposit will be handled and you'll be sent a receipt" the next business day.

Features

• Night depositories are unlocked with a key, and deposits are embedded into them in special locked bags. Banks open them the next business day, count the funds, and deposit them in the client's business account.
• Clients pay a fee to for night depository service.
• A night depository is a secured drop box on the outside of a bank where accountholders can deposit their daily cash, checks, and credit card slips outside of normal banking hours.
• Night depositories are utilized fundamentally by small business owners who actually deal predominantly in cash and checks, and need these receivables secured at the earliest opportunity.