Deposit Function

• Deposit


  A sum of money placed in an account, often with a bank, as a security or to earn interest
• Ways of enticing depositors

  • Give temporary piggy banks made of hard paper with attractive and appealing characters promoting the habit of thrift
• Demand Deposit


  Deposits which are withdrawn upon the presentation of checks during banking hours
• Time Deposit


  Deposits which can only be withdrawn after a certain period of time or at a designated maturity
• Types of Time Deposits

  • Time Certificate Deposit
  • Special Time Deposit
  • Savings Deposit
• All time deposits receive interest at varying rates
• The Bangko Sentral ng Pilipinas sets the minimum and maximum percentages which banks can offer to customers
• Direct or primary deposits

  Deposits made "over the counter" when the depositor himself brings his money and/or checks and other near cash items to the bank and hands them to the teller
• Derivative Deposit


  Deposits created from the proceeds of loans
• Kinds of Depositors


  • Individual deposits
  • Government deposits
  • Interbank deposits
• Motives of Depositors


  • Safety
  • Convenience
  • Earning or income
  • Accommodations
• Significance of Deposits to a Bank

  • Banks that attract depositors at all levels build up loanable funds, earn interest, and increase loans
  • Improved banking facilities and services benefit customers and the public
  • The shift from manual operations to automation in banks shows stockholders' intention to invite depositors and improve services
• Deposit Function


  The teller system employed by banks to perform the operations connected with the receipt of deposits and other allied activities related to it
• Receiving Teller


  • Receives and verifies deposit items and deposit slip
  • Gives proper receipt for the deposit made
  • Distributes the items deposited
  • Checks and proves the day's work
• Responsibilities of Receiving Teller

  • Errors in counting the money deposited
  • Presence of mutilated or counterfeit money
  • Postdated checks
  • Stale checks
• Mutilated currency


  Currency that cannot be recognized under the law, including demonetized currency or coins
• Receiving teller fails to detect counterfeit currency or mutilated money


  Bank may have to suffer losses through negligence
• Bank suffers losses through negligence


  Bank will charge the teller for irresponsibility or negligence
• Responsibilities of the receiving teller

  • Careful with credit instruments received for deposit to avoid responsibilities
• Postdated checks


  Checks dated after the date of deposit
• Teller should not receive postdated checks for deposit as he cannot be sure whether they shall be honored</b>
• Stale checks


  Checks dated very much earlier, say about a month, from the date of deposit
• Teller should tell the depositor to refer stale checks or instruments to the drawer
• Drawer may be relieved of liability behind issuance of stale checks if their interest is also jeopardized
• Material alterations


  Changes made on the date, amount (words vs figures), or payee of an instrument
• Teller must ensure any changes made on instruments are properly initialed by the drawer
• Teller should have instruments with erasures completely replaced instead
• Wrongly endorsed instruments


  Instruments not endorsed according to the name appearing on its face
• Teller should require the depositor to correct a wrong endorsement
• Responsibilities of the receiving teller

  • Careful in adding deposit slips
  • Careful in designating the account to be credited
• Careless crediting of proper accounts may lead to bank embarrassment or loss
• Teller should check the account number to minimize errors
• Deposit slips


  Forms filled in by the depositor when making a deposit
• Deposit items


  Cash and credit instruments or other items distributed
• Paying teller


  The teller who pays out cash in exchange for checks and other instruments necessitating encashment
• Degree of responsibility of the paying teller is greater than that of the receiving teller
• Responsibilities of the paying teller

  • Ensure check is neither postdated nor stale
  • Ensure endorsement is correct
  • Scrutinize material alterations
  • Detect forgery
  • Determine if check is crossed
  • Heed stop-payment orders
  • Ensure sufficient funds
• Paying teller should count the money to be paid at least twice to avoid erroneous payment
• Paying teller should know how much cash to get from the cashier to meet requirements
• Current account


  Account with differences from a savings account in initial deposit, service fees, penalty for bouncing checks, age of depositors, minimum balances, etc.