DEFINITION of 'Check Safekeeping'

A safekeeping service offered by banks and other depository institutions. With check safekeeping, the bank holds all of a customer's cancelled checks (or at least a copy of them) and does not return them to the parties that wrote the checks. Instead, the customer is sent a detailed statement outlining all checks that were paid, plus the amounts and names of the payees.

BREAKING DOWN 'Check Safekeeping'

Check safekeeping is typically done to reduce the expense of labor and postage that comes with mailing printed statements. The actual checks are often transcribed to microfilm or computer and then shredded. This service is also referred to as check retention.

RELATED TERMS
  1. Safekeeping

    The storage of assets or other items of value in a protected ...
  2. Canceled Check

    A check that has cleared the depositor's account and has been ...
  3. Safekeeping Certificate

    A document that represents ownership of a security or certificate ...
  4. Check

    A written, dated and signed instrument that contains an unconditional ...
  5. Crossed Check

    Any check that is crossed with two parallel lines, either across ...
  6. Rubber Check

    Another name for a "bounced check." A rubber check is a slang ...
Related Articles
  1. Personal Finance

    Top 5 Reasons Banks Won't Cash Your Check

    Learn the top reasons that a bank won't cash your check, and find out what steps you can take to prevent those scenarios from happening.
  2. Investing

    What is a Cashier’s Check?

    A cashier’s check is a check written on a financial institution’s funds.
  3. Personal Finance

    What is a Bounced Check?

    Bounced check is a slang term to describe a check that cannot be processed because its writer has insufficient funds.
  4. Managing Wealth

    Top Premium Checking Accounts of 2015

    Which banks offer the best deals for premium checking accounts – and what do you have to do to qualify for one?
  5. Financial Advisor

    What are the Duties of a Custodian?

    Custodian is a financial term that describes an institution, usually a specialized bank, which holds customers’ securities for safekeeping.
  6. Investing

    A Guide to Bank Accounts

    Find out which type of bank account suits your specific needs.
  7. Small Business

    How To Do a Background Check on Prospective Employees

    Discover why background checks can be extremely costly, tips for small businesses conducting checks on a budget and if professional checks can be avoided.
  8. Personal Finance

    The 8 Best Bank Perks

    Many banks are now offering free perks to entice new customers.
  9. Personal Finance

    Best Checking Accounts For Couples

    Being a couple, especially if you both have jobs, can help you qualify for benefits and fee waivers that would be tougher to get on just one salary.
RELATED FAQS
  1. How do you calculate payback period using Excel?

    Understand the various fees that can be assessed on a personal or business checking account, and learn methods to avoid being ... Read Answer >>
  2. Are checks escheatable?

    Learn that unpresented checks become unclaimed and escheatable by the state, when the state obtains and holds the title to ... Read Answer >>
  3. Do stimulus checks work?

    In theory, stimulus checks are intended to increase the amount of capital in the economy. By giving back tax dollars in the ... Read Answer >>
Hot Definitions
  1. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying ...
  2. Expense Ratio

    A measure of what it costs an investment company to operate a mutual fund. An expense ratio is determined through an annual ...
  3. Mezzanine Financing

    A hybrid of debt and equity financing that is typically used to finance the expansion of existing companies. Mezzanine financing ...
  4. Long Run

    A period of time in which all factors of production and costs are variable. In the long run, firms are able to adjust all ...
  5. Quasi Contract

    A legal agreement created by the courts between two parties who did not have a previous obligation to each other. A normal ...
  6. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
Trading Center