Check Safekeeping

AAA

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.

INVESTOPEDIA EXPLAINS '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. Chip Card

    Also known as a smart card or memory card. A chip card is a plastic ...
  2. Check Hold

    Denotes a period of time equal to the maximum number of days ...
  3. Depository Transfer Check - DTC ...

    A check used by a designated collection bank for depositing the ...
  4. Bank

    A financial institution licensed as a receiver of deposits. There ...
  5. Check

    A written, dated and signed instrument that contains an unconditional ...
  6. Check Representment

    A system wherein a check that bounced or did not clear when it ...
Related Articles
  1. Your First Checking Account
    Insurance

    Your First Checking Account

  2. Choose To Beat The Bank
    Options & Futures

    Choose To Beat The Bank

  3. When Good People Write Bad Checks
    Budgeting

    When Good People Write Bad Checks

  4. How does online banking assist with ...
    Budgeting

    How does online banking assist with ...

comments powered by Disqus
Hot Definitions
  1. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  2. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
Trading Center