What Is a Night Depository?
A night depository is a secured bank drop box where accountholders (usually small business owners or employees) can deposit their daily cash, checks, and credit card slips outside of normal banking hours (usually between 9 AM and 5 PM). The bank will collect the deposits and credit them to the client's account on the following business day.
Key Takeaways
- A night depository is a secured drop box on the exterior of a bank where accountholders can deposit their daily cash, checks, and credit card slips outside of normal banking hours.
- Night depositories are used mainly by small business owners who still deal mainly in cash and checks, and want these receivables secured as soon as possible.
- Night depositories are unlocked with a key, and deposits are inserted into them in special locked bags. Banks open them the next business day, tally the funds, and deposit them in the client's business account.
- Clients pay a fee to for night depository service.
Night Depository Explained
Although they may seem a little quaint—if not downright obsolete—in our increasingly cashless, mobile-pay society, night depositories do still serve a purpose. Many small businesses and service providers still deal mainly in cash and checks. Night depositories provide additional security for these merchants, since it frees them from keeping money at their business location overnight, where it might be vulnerable to theft. Automated teller machines (ATMs) can serve this purpose too, but they limit the physical amount of paper one can deposit at a time, and of course, they don't accept coins. If the client has a large bundle of bills or checks, the night depository is often more practical.
Businesses need a commercial or business account to use 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 exterior of the building at that branch. The bank will also require that checks, cash, credit and debit card receipts be placed in a special lockable zippered bag, along with deposit slips.
A manager or specially trained 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 ,determines who opens the bag and counts its contents: Normally, clients can dictate that the bag be unopened until they are present at the bank. Of course, this delays the posting of the funds to the account, but it speeds the resolution of any accounting errors and prevents disputes. If a client doesn't opt to be present, the bank opens the bag and processes the night deposit during its next business day, in accordance with Federal Deposit Insurance Corporation regulations.
Banks often require that you pay a monthly fee for night depository services.
Real-World Example of a Night Depository
Commercial banks that cater to small business emphasize their night depository services. First International Bank & Trust, a self-described community bank located located across North Dakota, central Minnesota and the greater Phoenix, AZ area, advertises its night depository service on its website. "Night deposits are available 24 hours a day, seven days a week at most First International Bank & Trustlocations," it proclaims.
Liberty Bank, which has locations in New Orleans, Kansas City, Detroit—along with smaller cities in Mississippi, Alabama, and Illinois—also touts the "low annual fee" for its night deposit services at many locations. "You can securely drop off checks and cash for deposit anytime, day or night. When the bank reopens, your deposit will be processed and you'll be sent a receipt" the next business day.
FAQs
A night depository is a secured drop box on the exterior of a bank where accountholders can deposit their daily cash, checks, and credit card slips outside of normal banking hours.
What is a night safe deposit? ›
A Night Safe works in a similar way to Quick Deposit envelopes. They are only available to Business Customers and must be organised by the Relationship Manager. They are designed to be used by Business Customers to deposit funds to their account outside branch opening hours.
How to deposit cash at night? ›
How Does a Night Depository Work? The night depository service provided by banks requires that the deposit contents are placed inside special lockable bags. The bags can either be one-time-use envelopes or reusable envelopes. The account holders also need to place a deposit slip in the envelope with the money deposit.
How to fill out a deposit slip? ›
Get a deposit slip from the bank or download it from their website. Write today's date and your account number on the slip. List the check(s) you're depositing with the amount, check number, and your endorsem*nt on the back. Add up the check amounts and write the total deposit.
What is overnight account processing? ›
Overnight processing occurs overnight after the conclusion of each Business Day and includes all items that are considered part of that Business Day's activity.
What does night drop mean? ›
Night drop, in the context of the F&B industry, refers to the process of securely depositing late-night revenue after operational hours. This can involve the use of drop safes, deposit bags, or secure locking mechanisms to store the earnings until they can be collected by authorized personnel or financial institutions.
What is an example of a safe deposit? ›
Example Sentences
It's a cinch that we interrupted, and it's still in its little safe-deposit vault. Together we went to the International Safe Deposit vaults, rented a box, and put in it the map.
How much cash is safe to deposit? ›
Banks must report cash deposits of more than $10,000 to the federal government. The deposit-reporting requirement is designed to combat money laundering and terrorism. Companies and other businesses generally must file an IRS Form 8300 for bank deposits exceeding $10,000.
Can you deposit cash at an ATM at night? ›
Cash deposit ATMs offer unparalleled convenience by providing individuals with a secure and accessible means to deposit cash anytime, day or night. This flexibility allows customers to conduct transactions on their own terms without the constraints of banking hours.
Can you send money at night? ›
Instant transfers send your funds instantly, even on nights and weekends, regardless of your regular transfer schedule.
Depending on the situation, deposits smaller than $10,000 can also get the attention of the IRS. For example, if you usually have less than $1,000 in a checking account or savings account, and all of a sudden, you make bank deposits worth $5,000, the bank will likely file a suspicious activity report on your deposit.
What is a depository at a bank? ›
A depository is a place to deposit, or place, assets such as cash or securities. Depository institutions can include banks, credit unions, and savings and loans institutions. When you place your funds in a depository, the organization often will pay you interest on your deposit.
What does a deposit slip look like? ›
Information generally found on deposit slips includes: The date on which the deposit is being made, the name of the depositor, the account number to which the funds will be deposited, the name of the account holder, the type of deposit (cash or check), and in some cases, the source of funds.
Can you still deposit money when the bank is closed? ›
If your branch is closed or you don't want to wait in line, you can deposit cash with the ATM. Making cash deposits through ATMs is the closest you'll get to a cash deposit made directly at the bank itself. What's more, most banks and credit unions have far more ATM locations than they do physical bank branches.
How to put money in the bank when it's closed? ›
- The Post Office. Customers of nearly all banks, including Barclays, Halifax, HSBC, Lloyds, NatWest and Santander, can go to any of the Post Office's 11,500 branches to: ...
- Banking hubs. ...
- Mobile and pop-up banks. ...
- Cash machines (ATMs) ...
- Your local shop. ...
- Online banking.
A Safe Deposit Box is a secure container, usually a metal box, located in the vault of a financial institution. These boxes are offered for account holders to rent, if available, and are used to keep valuables and important documents. The box has a dual lock system, for security, requiring two keys to open it.
