Night Depository

AAA

DEFINITION of 'Night Depository'

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 Depository'

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 ...
  2. Deposit Slip

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

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

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

    An electronic banking outlet, which allows customers to complete ...
  6. Gold IRA

    Definition of Gold IRA
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. Tired Of Banks? Try A Credit Union
    Retirement

    Tired Of Banks? Try A Credit Union

comments powered by Disqus
Hot Definitions
  1. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  4. Takeover

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

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  6. 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 ...
Trading Center