What is counter credit?
Saw a transaction labeled as “counter credit” while reviewing your bank statement?
And wondering what does counter credit really mean?
Well, there is nothing to be panicked about since…..
Counter credit refers to the deposits made by you in person at the bank over the counter.
Let’s dig deeper and see what does counter credits means on your bank statement and what is it all about:
What do you mean by the term counter credit?
In simple words, counter credit refers to the direct way of depositing money at the bank or other financial institutions.
It is the deposit made by the accountholder at the bank counter and the deposit is received by the bank staff member in person.
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Do we have any other name for the counter credit?
Yes, counter credit is also called a counter deposit.
So, if you see counter deposit on your bank statement it means the same thing as counter credit.
Example of a counter credit or deposit:
For making a counter credit or deposit, you will need to go to the nearest branch of the bank where you have an account.
Then, you will fill in a bank deposit slip with the particulars like date, bank account number, amount of money you are depositing, etc. Then, you will present the deposit slip and cash to the bank cashier for making a deposit into your account.
Some banks allow other people to deposit money in your account. So, if the other person goes to the bank branch to deposit money in your account it may appear as counter credit or deposit on your bank statement.
Are there any benefits of depositing cash at the bank?
With the banking going online in almost all aspects, depositing cash at the bank in person give you a sense of security that you are depositing it in the right account which is lacking a bit in the case of online transactions.
Also, depositing the cash or check at ATM can sometimes get complicated if the machine gets broken in the middle of the transaction. You just can’t be 100% confident with those machines if the transaction is being processed accurately or not.
While at the bank, you can double-check with a teller that if the money went to your account and how much money was deposited.
Also, the cash deposited at the bank gives you an instant deposit and money is available to you immediately. Hence, you are all set to pay your bills once that cash is in your account.
Are there any disadvantages of depositing cash at the bank?
Now that we have discussed the advantages of counter deposits, let’s look at some disadvantages as well.
There is no harm in depositing money at the bank personally but it all comes down to convenience.
With the payment world transforming with the options like PayPal, Zella, ACH, Direct Deposits, Mobile Deposits, and so on, there are no reasons for you to go to the bank to make physical deposits.
People rarely write check nowadays. Even if you receive a cheque, you no longer need to go to the bank and spend money on gas just to deposit the check.
You just need to pull your phone out and take a picture of the check using the bank’s app to deposit it in your account. It’s so quick and easy.
Final thoughts on what is counter credit
Now that you know all about counter credit, don’t be panicked when you see any transaction marked as counter credit or deposit in your bank statement. It’s simply the deposit made in-person at the bank counter.
Even though there are pros and cons of making in-person deposits at the bank, it all comes down to personal preference. It’s all about how comfortable you are with managing money using online tools than traditional means.
what is counter credit?
Anika Jindal
Anika is a CPA and founder of What Anika Says. She shares simple and actionable frugal living, money management and money-saving tips to live a debt-free financially independent life. She has been featured on popular websites like Bankrate, Forbes, Mint ,and Authority Magazine. Byline: MSN