Proof Of Deposit - POD

AAA

DEFINITION of 'Proof Of Deposit - POD'

The verification that the dollar amount of a check or draft being deposited is correct. Proof of deposit is accomplished when the amount written on the check is compared to the amount on the deposit slip. This is the second step in the process of check presentation for payment after checks have been sorted by a reader-sorter machine.

INVESTOPEDIA EXPLAINS 'Proof Of Deposit - POD'

The proof of deposit is done after all of the checks have been separated by the sorting machine into either the "on us" category or "on them" category. This second step is the only procedure in the check processing process that is not completely automated. Check proofing is a manual process that is done after check sorting is complete and the routing and account numbers on the check have been recorded by the sorter.

RELATED TERMS
  1. Safe Deposit Box

    A box - usually located inside a bank - which is used to store ...
  2. Reservable Deposit

    A bank deposit subject to reserve requirements. Reserve requirements ...
  3. Bank

    A financial institution licensed as a receiver of deposits. There ...
  4. Term Deposit

    A deposit held at a financial institution that has a fixed term. ...
  5. Deposit

    1. A transaction involving a transfer of funds to another party ...
  6. Brokered Deposit

    A large-denomination bank deposit that is sold by a bank to a ...
Related Articles
  1. Tired Of Banks? Try A Credit Union
    Retirement

    Tired Of Banks? Try A Credit Union

  2. Get A Short-Term Advantage In The Money ...
    Personal Finance

    Get A Short-Term Advantage In The Money ...

  3. Your First Checking Account
    Insurance

    Your First Checking Account

  4. Demystification Of Bank Accounts
    Options & Futures

    Demystification Of Bank Accounts

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center