What is a Deposit Slip
A deposit slip is a small written form that is sometimes used to deposit funds into a bank account. A deposit slip indicates the date, the name of the depositor, the depositor's account number and the amounts of checks, cash and coin being deposited. The bank clerk typically verifies the funds received against the amounts listed on the deposit slip and processes the slip to indicate the deposit was received.
BREAKING DOWN Deposit Slip
Upon entering a bank, the customer typically finds a stack of deposit slips with designated spaces to fill in required information. The customer is required to fill out the deposit slip before approaching the bank teller to deposit funds. Additionally, deposit slips are often included in the back of checkbooks, though the use of paper checks has declined in the 21st century.
Purpose of Deposit Slips
Deposit slips offer protection to both the bank and the customer. Banks use them to help maintain a written ledger of funds deposited throughout the day and to ensure that no deposits are unaccounted for at the end of the business day.
For bank customers, a deposit slip serves as a de facto receipt that the bank properly accounted for the funds and deposited them in the correct amount into the correct account. If the customer later checks his account balance and discovers the deposit was not counted correctly, the deposit slip serves as proof that the bank acknowledged receiving the funds from the customer.
Growing Obsolescence of Deposit Slips
Signs are emerging that deposit slips are becoming a thing of the past. Several banks, including JPMorgan Chase & Co. and Huntington Bancshares, are beginning to remove them from their branches in favor of newer technology. JPMorgan Chase is replacing deposit slips with ATM card readers that verify the customer's identity and then provide receipts to both the bank and the customer that break down the transaction after the deposit is complete.
Although deposit slips may also be used at ATMs, many banks do not require they be included with deposited funds. Newer ATMs have scanning technology that provides an image of the deposited check on the receipt and do not allow the use of deposit slips. In many cases, smartphone technology precludes the need to visit an ATM altogether. Many banks offer apps that enable customers to scan paper checks instead of depositing them via a bank teller or ATM.