Cash Deposit Do’s and Don’ts
When preparing a cash deposit to be sent to your bank, it is important that you are aware of certain procedures. This is imperative to make sure that your deposits are orderly, properly documented and properly secured to ensure that you are receiving the proper credit from the bank. Here is a handy guide to making sure that your cash deposits are prepared in proper order.
Physical Condition of Currency
There must be at least 50% of each bill for the money to be credited to your account. If you have unfit currency due to its physical condition (torn, dirty, defaced etc.) you can include it in your deposit, and it will be taken out of circulation.If you have mutilated or contaminated currency, you should refer to the Federal Reserve website for instructions on what to do with it. https://www.frbservices.org/resources/rules-regulations/operating-circulars.html#2
All bills should be straightened with the edges lined up.
Preparing Money for Deposit
To keep your deposit neat and orderly, you should use money bands to separate your currency denominations. Money bands must be color coded along the edges to meet the existing standards of the American Bankers Association. Many banks offer these to their customers as a courtesy, or they are available through most office supply stores or online. Each strap should consist of bills of all the same denomination of currency with one money band clearly marking the total dollar amount of money in each strap. The band should wrap around the middle of the stack of bills. There should be no damaged bills, foreign currency or coinage in the strap. Also, the strap should be free of paper clips, staples and rubber bands. The money bands should be the proper length to wrap around the stack of money with only a very slight overlap. You will want to make sure there are not loose flaps, and the adhesive that holds the band together is adequate and will not come unsealed.Once the money band has been properly secured around the stack of money, it is a good idea to place the date the money was counted and the initials of those who verified the count on the band. If you have remaining currency that is not enough to band, you may leave those bills to be placed loosely in your cash deposit bag. Any coinage should be placed in a coin envelope with the dollar amount of coinage written on the outside and sealed.
Establish a Proper Chain of Custody
The proper chain of custody of your deposit is of utmost importance to guarantee that the business's money makes it from Point A to Point B safely and securely. This chain of custody begins with having at least two people present when dealing with any type of cash handling. This helps to keep people honest, and there should always be at least one preparer and one verifier. To create a proper chain of custody it is important to select a tamper-evident deposit bag for your deposit. Once you have totaled your deposit that is to be placed in the security bag and filled out your deposit slip, clearly and carefully fill out the information on the front of the cash deposit bag. You should be filling out the date, breakdown of the deposit between cash and checks, total amount of the deposit, business name, bank name, account number it is to be deposited in, your name or names of both people preparing the deposit and a signature. Place the deposit into the tamper-evident bag along with your deposit slip. Be sure to fill out all the information on the top tear off receipt of the bag and have both parties sign off that this deposit is verified, then tear off the strip and keep for your records. Remove the liner on the bag to expose the adhesive strip, and firmly seal the bag going all the way across the bag to ensure the entire width of the bag is securely sealed. Your deposit is now ready for whatever your next step is in getting it to the bank safe and secure, whether you use a night drop box, atm, drop safe or physically take it there.