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A Comparison of ATM Deposit and Night Deposit Procedures

February 12, 2018

Many businesses, such as restaurants, bars, and casinos, don’t keep the same 8am to 5pm hours that their banks do. The fastest way to get your funds into your bank account and have them available for use is to deposit them in-person with a bank employee. But that is not always a practical or feasible. Therefore, it is often necessary to use a night drop box to deposit money earned throughout the day to prevent potential theft and ensure that funds are available for use from the company’s bank account.

Here is a comparison between night deposits and ATM deposits for after-hours banking needs. More specifically, this article will describe the procedure for each deposit method, the pros and cons of each practice, and safety tips to getting your money to the bank at night.  

ATM Deposit Procedure

Business owners and employees often make use of ATMs to deposit money to a business bank account but have concerns about ATM cash deposit availability. Per FDIC rules, the bank must post the deposit to your company account on the day that you made the deposit. Banks are required to display the cutoff times for their same-day deposits. But if you deposit money in an ATM that is not connected to your actual bank, the bank is only required to credit your account on the next pickup day and not necessarily the day that you made the deposit.

One risk of making ATM cash deposits is drawing unwanted attention to yourself in a public place and possibly in the watchful eye of criminals. Some ATMs also limit the number of bills that you can put into them at once, they don’t allow coin deposits, and may come with fees for frequent ATM transactions.

Night Deposit Procedure

Before ATMs were so widespread, bank night depository procedures were followed by a majority of businesses for overnight checks and cash. It is necessary to have a business account at any bank that you make an overnight deposit at, and then the bank will likely provide you with a key to open up a secure night drop box on the outside of the bank building.

This type of service typically requires a monthly free, which can make it a costlier option than depositing money at an ATM. If you want to avoid potential disputes, your bank may be willing to delay opening your deposit bag until you arrive in person later. However, this creates a delay in accessing the funds in your bank account and having them be available for use.

Safety Tips for Transporting Money

No matter how you decide to transport your cash to the bank after regular business hours, your number one priority should be keeping it safe and protected. Superior Bag’s Cash in Transit Bags are ideal for making night deposits because they’re constructed with tough materials and come in various sizes for different amounts of cash. Specialized night drop box bags with detailed labels are also a great way to eliminate confusion and reduce the possibility of human error.

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