Night Depository

A A A

DEFINITION

A bank drop box where merchants can deposit their daily cash, checks and credit card slips outside of banking hours. The bank collects the deposits and credits them to the merchant's account on the following business day.

INVESTOPEDIA EXPLAINS

Night depositories provide additional security for merchants, since they don't have to keep this money at their business location overnight, where it could be vulnerable to theft.

Instead of the envelopes that individual customers use to make bank deposits at ATMs, merchants often use lockable zippered bags, which are more secure and hold a larger volume of paper.


RELATED TERMS
  1. Commercial Account

    Any type of financial account that is owned and used by a business or corporation. ...
  2. Deposit Slip

    A small written form that is sometimes used to deposit funds into your account. ...
  3. Checking Account

    A transactional deposit account held at a financial institution that allows ...
  4. Deposit

    1. A transaction involving a transfer of funds to another party for safekeeping. ...
  5. Automated Teller Machine - ATM

    An electronic banking outlet, which allows customers to complete basic transactions ...
  6. Spoofing

    This is a scam where an attacker pretends to be someone or something else to ...
  7. Interest Rate Index

    An index that is based on the interest rate of a financial instrument or basket ...
  8. LIBOR Scandal

    A scandal in which financial institutions were accused of fixing the London ...
  9. Float

    Money in the banking system that is briefly counted twice due to delays in processing ...
  10. Capital Buffer

    Mandatory capital that financial institutions are required to hold in addition ...
Related Articles
  1. Choose To Beat The Bank
    Options & Futures

    Choose To Beat The Bank

  2. How To Break Up With Your Bank
    Options & Futures

    How To Break Up With Your Bank

  3. Who Backs Up The FDIC?
    Options & Futures

    Who Backs Up The FDIC?

  4. What does the Daily Average Revenue ...
    Investing Basics

    What does the Daily Average Revenue ...

  5. How Visa Counts On Your Free-Spending ...
    Stock Analysis

    How Visa Counts On Your Free-Spending ...

  6. How To Trade Credit Card Stocks
    Chart Advisor

    How To Trade Credit Card Stocks

  7. What's a better way to borrow money: ...
    Savings

    What's a better way to borrow money: ...

  8. What are the pros and cons of overdraft ...
    Credit & Loans

    What are the pros and cons of overdraft ...

  9. Cost of Debt
    Investing Basics

    Cost of Debt

  10. Don't Sign That! Legal Pitfalls of Signatures ...
    Personal Finance

    Don't Sign That! Legal Pitfalls of Signatures ...

comments powered by Disqus
Hot Definitions
  1. Genuine Progress Indicator - GPI

    A metric used to measure the economic growth of a country. It is often considered as a replacement to the more well known gross domestic product (GDP) economic indicator. The GPI indicator takes everything the GDP uses into account, but also adds other figures that represent the cost of the negative effects related to economic activity (such as the cost of crime, cost of ozone depletion and cost of resource depletion, among others).
  2. Accelerated Share Repurchase - ASR

    A specific method by which corporations can repurchase outstanding shares of their stock. The accelerated share repurchase (ASR) is usually accomplished by the corporation purchasing shares of its stock from an investment bank. The investment bank borrows the shares from clients or share lenders and sells them to the company.
  3. Microeconomic Pricing Model

    A model of the way prices are set within a market for a given good. According to this model, prices are set based on the balance of supply and demand in the market. In general, profit incentives are said to resemble an "invisible hand" that guides competing participants to an equilibrium price. The demand curve in this model is determined by consumers attempting to maximize their utility, given their budget.
  4. Centralized Market

    A financial market structure that consists of having all orders routed to one central exchange with no other competing market. The quoted prices of the various securities listed on the exchange represent the only price that is available to investors seeking to buy or sell the specific asset.
  5. Balanced Investment Strategy

    A portfolio allocation and management method aimed at balancing risk and return. Such portfolios are generally divided equally between equities and fixed-income securities.
  6. Negative Carry

    A situation in which the cost of holding a security exceeds the yield earned. A negative carry situation is typically undesirable because it means the investor is losing money. An investor might, however, achieve a positive after-tax yield on a negative carry trade if the investment comes with tax advantages, as might be the case with a bond whose interest payments were nontaxable.
Trading Center