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. Check

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

    Any check that is crossed with two parallel lines, either across ...
  3. Negative Float

    The period of time between when a bank customer writes a check ...
  4. Limited Purpose Trust Company

    A trust company that has been chartered by the state to perform ...
  5. Bounced Check

    A slang word for a check that cannot be processed because the ...
  6. Check Hold

    Denotes a period of time equal to the maximum number of days ...
Related Articles
  1. Personal Finance

    How to Cancel a Check

    If you've had a personal check lost or stolen, the next best step is to cancel the check by calling your bank and putting a stop payment on the check.
  2. Personal Finance

    Explaining Checking Accounts

    A checking account is an account at a financial institution, usually a bank, that allows for deposits and withdrawals.
  3. 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.
  4. Investing

    What is a Cashier’s Check?

    A cashier’s check is a check written on a financial institution’s funds.
  5. 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.
  6. 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?
  7. 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.
  8. Investing

    A Guide to Bank Accounts

    Find out which type of bank account suits your specific needs.
  9. Personal Finance

    The 8 Best Bank Perks

    Many banks are now offering free perks to entice new customers.
RELATED FAQS
  1. How long does it take a check to clear?

    It usually takes two days for a check to clear, but in some cases it may take longer. Discover how banks treat large deposits ... Read Answer >>
  2. 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 >>
  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. Leveraged Buyout - LBO

    The acquisition of another company using a significant amount of borrowed money (bonds or loans) to meet the cost of acquisition. ...
  2. Current Assets

    A balance sheet account that represents the value of all assets that can reasonably expected to be converted into cash within ...
  3. Tax Liability

    The total amount of tax that an entity is legally obligated to pay to an authority as the result of the occurrence of a taxable ...
  4. Preferred Stock

    A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock. Preferred shares ...
  5. Net Profit Margin

    Net Margin is the ratio of net profits to revenues for a company or business segment - typically expressed as a percentage ...
  6. Gross Margin

    A company's total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage. ...
Trading Center