Depositing money sounds easy—walk in with cash or a check, scribble a few things on a slip, and get the job done. But before your money ends up in someone else’s savings or, worse, the bank’s mystery limbo, it’s worth knowing what not to do. So, here are ten slip-ups that are more common than you think, and they’re absolutely avoidable once you know what to watch for.
Mixing Personal And Business Funds
Combining personal and business funds in a single bank deposit can cause more problems than it solves. It blurs financial boundaries, making it harder to track income, expenses, or business performance. It can also raise eyebrows at the bank and among tax authorities who expect well-documented income sources.
Depositing Checks Without Endorsement
Skipping the endorsement on a check can halt the entire deposit process. When you deposit a check, banks require your signature on the back to authorize the transaction. Some banks also expect you to include a note like “For deposit only” along with your account number. Forgetting this step means the check might get rejected.
Ignoring Mobile Deposit Limits
With the convenience of mobile banking, it’s easy to assume you can deposit any check with a quick snap from your phone. However, banks place daily and monthly limits on mobile deposits to prevent fraud and processing errors. If you try to deposit a check that exceeds your limit, the transaction might be held or rejected outright.
Filling Out Deposit Slips Inaccurately
Deposit slips are essentially instructions to the teller or machine, and if those instructions are wrong, so is the outcome. You might end up depositing into the wrong account or seeing your money disappear into a holding pattern until the error gets resolved. A few extra seconds of care ensure your funds land where they belong.
Depositing Large Sums Without Notification
Dropping a large sum of cash into your account can trigger all sorts of issues. From unexpected hold times to fraud detection systems, the bank may flag the transaction simply because it doesn’t match your usual activity. Giving your bank a quick heads-up when you expect to deposit an unusually large amount is a smart move.
Not Retaining Deposit Receipts
Deposit receipts confirm what was deposited, when, and how. If something goes wrong—say, the bank misplaces your funds, or there’s a typo in the entry—the receipt becomes your backup. Without it, you’re relying on memory and goodwill to prove what happened. This is especially important when depositing at an ATM.
Using Third-Party Checks Without Approval
Trying to deposit a third-party check—one originally written to someone else—can get complicated fast. Many banks are hesitant to accept these checks because they open the door to fraud and confusion. You may also be asked to provide identification for both parties or additional endorsements. This catches many people off guard.
Failing To Confirm Check Clearing Times
Depositing a check doesn’t always mean the money is immediately available. Every bank has its own check-clearing policy, and the timeline might vary depending on where the check came from, its amount, and your banking history. The best approach is to ask at the time of deposit. That way, you’ll know exactly when the money becomes usable.
Depositing Damaged Or Altered Checks
A check that’s torn, wrinkled, smudged, or written over can cause big trouble at the bank. Machines might not be able to read the information, and tellers may reject it to avoid processing errors. Even something as small as a stain or crossed-out number can delay your deposit. A little extra care preserves their readability and keeps your deposit on track.
Ignoring Cutoff Times For Same-Day Deposits
Every bank sets a specific time—usually in the late afternoon—when deposits count toward that day’s business. If you miss it, your deposit won’t be posted until the next business day. That can cause delays in bill payments or account balances. Always check the cutoff time if timing matters, as a deposit made too late might not show up when you need it most.
