You may have heard about deposit slips since they are commonly used when depositing money in a bank. In some cases, bank customers must fill out deposit slips to direct their funds to the correct bank account.
A deposit slip identifies the client and provides financial instructions for the bank. The slip also creates a paper trail of every transaction to protect the client and the bank. Keep reading the article to learn more about deposit slips and how to use them.
Understanding A Deposit Slip
So, what’s the definition of a deposit slip? It’s a paper form or a document a bank client adds when depositing cash into a bank account. The document contains important details needed to deposit money into the account. Here are some key facts about deposit slips:
- It includes the depositor’s name, date of depositing funds, account number, and amount of cash deposited. The slip should also include whether the deposit consists of checks or cash. It may also include information on whether the depositor wishes to withdraw a certain amount of funds back from the deposit.
- The deposit slip provides proof that the bank received funds from the client.
When the cashier at the bank receives the slip, they process the deposit and match the total cash to the total from the slip to ensure they match. Once the procedure is done, the casher has to give the customer a receipt.
How Does A Deposit Slip Work?
The slip works as a document that you must fill out to deposit funds to a specific bank account. Customers wishing to deposit funds can visit a bank and find a stack of slips to fill in and submit. The depositor has to add the necessary data to the slip before approaching the cashier.
The customer should make sure they enter the account number since that’s where the funds go. The account number should be written at the bottom of the deposit slip.
If a customer wants to ensure the funds are deposited, they can request a copy of a deposit. However, as mentioned, the cashier always prints out the receipt that works as payment proof.
Keeping proper financial records is time-intensive and small mistakes can be costly. BooksTime makes sure your numbers are 100% accurate so you can focus on growing your business.
Deposit Slip Advantages
The main idea of the deposit slip is to ensure a specific level of protection for the bank and the client. Financial institutions utilize slips to maintain a documented ledger. This ledger consists of recorded funds that clients deposit during a business day. Slips enable banks to ensure that all deposits are noted.
As for the clients, the slip guarantees that the bank properly added the funds to the account. Upon the end of the operation, the client gets a receipt which is the guarantee. For instance, if the depositor decides to check their bank account, and it turns out the cashier made a mistake, they can use the receipt to make the bank fix it.
The customer can also request a copy of a slip to check the itemized amounts that made up the total deposit. If the bank is wrong and didn’t process the correct amount, the customer can expect the issue to be fixed. So, with the aid of a deposit slip, the bank is protected against scammers. And clients get guaranteed protection in case of a mistake made by a cashier.
How To Use a Deposit Bank Slip?
As mentioned, you have to fill out the slip before going to the cashier. Remember, a deposit slip isn’t acting as a deposit. Instead, you have to bring cash or checks to direct to an account mentioned on the slip. Then the cashier verifies that the amount of money stated in the slip matches the funds you brought.
How To Create A Deposit Slip For Someone Else?
This step is rather easy. You may also request help by visiting your bank and asking a bank worker how to fill out the slip. Here’s a simple instruction:
- Add personal information. Fill out the form by adding your name and account number.
- Fill in additional data. Write the date of depositing funds. If you are using a different credit union branch, it’s necessary to write the name of the “home” credit union.
- Write the cash amount of a deposit. Calculate the total amount of money (bill or coins included). If you don’t use cash to deposit, leave the space blank.
- Add checks individually. Write every check number and the number of funds in each check separately. If you aren’t using checks, then proceed with the next step.
- Add up the funds to calculate a subtotal. It’s the total amount of cash and checks you direct to a bank account. It could be the total amount of checks only if you don’t use cash and vice versa.
- Enter the number of funds to withdraw. This step is only for those who use checks and want to withdraw some cash. It’s convenient since clients don’t have to withdraw money later from the bank account. If a withdrawal isn’t necessary, leave the space blank.
In the end, you can calculate the total deposit. It’s the total, but after subtracting the withdrawal amount. If not withdrawing, then use the subtotal amount. The final step is signing the deposit slip.
Author: Charles Lutwidge