Night Depository
A night depository is a secured drop box mounted on the exterior of a bank or credit union that allows account holders—typically small businesses—to deposit cash, checks, and card receipts outside normal banking hours. Deposits are collected by bank staff and credited to the account on the next business day.
Key points
- Designed for businesses that handle significant cash or checks and need overnight security.
- Deposits are placed in tamper-proof, lockable bags before being inserted into the drop box.
- Access to the box requires a key or authorized credential issued by the bank.
- Banks collect and process the deposits the next business day; clients can usually request to be present when their deposit bags are opened.
- Night depository services typically carry modest fees or require a deposit for the key and bags.
How it works
- Open a business or commercial account and request night depository access.
- The bank issues a key (or other access method) and provides or specifies required lockable deposit bags.
- After business hours, staff place cash, checks, and receipts into the sealed bag and drop it into the secured exterior box.
- A bank employee collects the bag the morning of the next business day, opens and counts the contents, and posts the deposit to the account per bank procedures and regulatory rules.
- If requested in the account agreement, the bank will not open the bag until the depositor is present; this can delay posting but can simplify resolving discrepancies.
Who uses night depositories and why
- Restaurants, retail stores, service providers, and other businesses that handle cash late into the evening.
- Businesses that receive large bundles of bills or many checks and prefer a secure drop-off that can accept more and different items than most ATMs (ATMs often limit cash volume and do not accept coins).
- Merchants who want to minimize the risk of theft from keeping cash on premises overnight.
Costs and practical considerations
- Fees vary by institution. Common charges include a refundable deposit or fee for the key and costs for reusable lockable bags.
- Some banks sell different bag sizes; prices and requirements differ by branch.
- A commercial/business account is generally required.
- If you opt to be present when deposits are counted, posting may be delayed until you attend.
When deposits post
Deposits are normally posted the morning of the first business day after the deposit is made, when bank staff collect and count the bags. If a depositor requests to be present for opening, processing will occur once that condition is met.
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Example scenario
A restaurant that closes near midnight uses a night depository to avoid leaving the day’s takings on site. Staff seal cash and credit slips in a lockable bag, deposit it in the bank’s exterior drop box, and the bank posts the funds the next business morning after counting.
Frequently asked questions
-
Do I need a special account?
Yes—night depository access is typically available only to commercial or business account holders. -
Can anyone open the bags?
Bank staff open bags during normal processing unless the depositor has arranged to be present or specified otherwise in the deposit agreement. -
Are night depositories safer than ATMs?
For large volumes of cash and coins, yes—night depositories accept more items (including coins) and accommodate larger deposits than most ATMs.
Bottom line
Night depositories provide a practical, secure way for businesses that handle substantial cash or checks to make after-hours deposits. They reduce on-site cash risk and accommodate larger or mixed deposits that ATMs cannot, though they usually involve modest fees and require a business account.