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. Deposit

    1. A transaction involving a transfer of funds to another party ...
  4. Term Deposit

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

    A financial institution licensed as a receiver of deposits. There ...
  6. Brokered Deposit

    A large-denomination bank deposit that is sold by a bank to a ...
RELATED FAQS
  1. What is the Central Registration Depository?

    The Central Registration Depository (CRD®) is an automated database used by the NASD and the NASAA to store and maintain ... Read Full Answer >>
  2. How does a depository bank benefit from issuing an ADR for a foreign company for ...

    For domestic investors the benefits of increasing the portion of their portfolio that they invest in foreign companies is ... Read Full Answer >>
Related Articles
  1. Retirement

    Tired Of Banks? Try A Credit Union

    These nonprofit organizations can provide a range of services for lower fees.
  2. Personal Finance

    Get A Short-Term Advantage In The Money Market

    This investment vehicle is often the perfect stop-gap measure for growing your money.
  3. Insurance

    Your First Checking Account

    This owner's manual will show you what to expect from your bank.
  4. Options & Futures

    Demystification Of Bank Accounts

    Find out which type of account suits your specific needs.
  5. Budgeting

    Do I Need A Personal Accountant?

    You know you need to keep your personal finances better organized. Should you hire professional help, and if so what kind?
  6. Personal Finance

    4 Tips To Cut Your Monthly Bank Fees

    We asked banking professions to share their biggest tips for tackling bank fees, and hopefully save more even before spring hits.
  7. Entrepreneurship

    JPMorgan vs. Goldman Sachs: A Tale of Two Stocks

    The performance of JPMorgan and Goldman has been impressive, but one has a slight edge.
  8. Stock Analysis

    How Citigroup Ensured That It's Too Big to Fail

    As a business, Citi has everything going for it. Scale, operational breadth...and the ear of key policymakers.
  9. Economics

    Mitigation Trade: Making Up For Environmental Harm

    Mitigation banking is a system by means of which the liability of ecological damage is transferred from the permittee to the mitigation banker through a system of credits and debits under regulatory ...
  10. Investing

    What's a Run Rate?

    Run rate is a term used to denote annualized earnings extrapolated from a shorter time frame. Management uses the run rate to estimate future revenues.

You May Also Like

Hot Definitions
  1. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  2. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  3. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  4. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  5. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  6. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
Trading Center