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Cash Deposit Do’s and Don’ts

How to Safely Transport Business Cash

As you prepare to send a deposit to your bank, it is helpful to understand the different procedures involved. Knowing how to safely transport business cash flow can keep your deposits secure and organized, as well as enable you to receive the right validation from the bank. When you follow a guide to best prepare your deposits, you can ensure you will have an efficient and easy experience depositing your business's money.

Manual vs. Electronic Deposits

When planning to make a deposit for your business, know the options that are available to you. Many banks offer mobile or electronic deposits for checks through their mobile apps. Electronic deposits can be very helpful for busy periods of the day or year when you don't have the time to run to the bank. Additionally, the process for virtually depositing a check is quick and easy. 

Businesses can also move funds virtually through electronic funds transfers (EFT) and direct deposits. This allows businesses to easily move money to different accounts with just the click of a mouse. 

However, electronic deposits don't provide options for businesses that receive large amounts of cash. Additionally, manual deposits allow you to choose whether you want to cash some or all of your check. Both options offer a lot of freedom, so it is important to find the choice that works best for you and your business.

Consider the Physical Condition of Currency

When making a cash deposit, consider whether you have any currency that is considered unfit due to its physical condition. Unfit currency must be in a separate, labeled bag. When you submit unfit currency with physical damage, the banks will remove it from circulation to ensure the quality of bills in the market. Unfit currency includes bills with damage that can include:

  • Tears
  • Dirt
  • Marks and other defacing qualities


If you have mutilated or contaminated currency, you should refer to the Federal Reserve website for instructions on how to best handle those bills.

An example of good cash handling procedures can be to prepare to make a deposit when you notice that you have gathered larger amounts of unfit currency. Depositing that cash is a good way to maintain the integrity of the cash you keep at your business while still regularly depositing money into your business's bank account. 

Prepare Money for Deposit 

When you prepare to make a deposit, it is also important to consider the presentation of your bills. Organizing your bills will help the bank efficiently handle your deposit. Using tools like currency straps and lining up the edges of your bills can help better the presentation of the money you want to deposit.

Use Currency Straps or Bands

To keep your deposit neat and orderly, you can use currency straps or bands to help organize the bills. Straps are color-coded strips of paper that wrap around your bills. They group bills in stacks of 100 and require a stamp to verify the amount and location of the deposit. All bills within a strap should be the same currency denomination. Many banks offer these currency straps to their customers as a courtesy, but they are available through most office supply stores or onlineas well.

Money bands are another paper strip to organize bills, but they organize bills by amount. Like straps, they all require bills of the same denomination, but they use a different number of bills. For example, when packaging $20 bills, you need to include 25 bills to equate to $500 in each band. This helps banks to accurately and efficiently calculate the total deposit amount for your visit. Most bills require sets of 20 to 25 bills, but it will vary in amounts.

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 no 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. 

How to Bundle Money for Cash Deposits 

When you have a large number of money straps to deposit, you can bundle them together to create a more efficient process. Bundles include 10 sets of bundles, equating to 1,000 bills in each bundle. To bundle your straps together, you need to line up the straps so all of the edges and strips line up together neatly. You can secure the straps together using two thick rubber bands at each end of the bundle, so the edges are tightly bound.

If you have remaining currency that is not enough to band, you may leave those bills loose in your cash deposit bag. Additionally, place any extra coinage 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 to its destination 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 ensure honesty throughout the deposit process, 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 the front of the cash deposit bag with the following information:

  • Deposit date
  • Breakdown of the deposit between cash and checks
  • Amount of the deposit
  • Business name
  • Bank name
  • Account number
  • Your name or names of both people preparing the deposit
  • 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 to verify the deposit, then tear off the strip and keep it 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 the entire width of the bag.

Your deposit is now ready for the next step, whether that is getting it to the bank safe and secure or using a night drop box, ATM, or drop safe. 

Protect Your Next Deposit With Connover Packaging 

When depositing your money, it is important to look at examples of cash handling procedures to determine the best process for your business. At Connover Packaging, we offer a selection of cash deposit bags you can use to make your next deposit securely.

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