Do you find yourself looking at a bank statement wondering what does counter credit mean? Thankfully, it’s pretty simple.
Counter credit (also sometimes known as a counter deposit), is just money that you deposited into your account over the counter at your bank. This could be from cash or a check that you deposited.
Typically, this is the quickest way to deposit money into your account and have it show up for you to use. There are other ways to deposit money, such as through an ATM or mobile app, which we will dive into later on.
Let’s dive deeper into what a counter credit is and how it affects you and your bank statement.
What is a counter credit?
A counter credit is money that you deposit into your bank account over the counter at a bank. This is different than money deposited through an ATM or mobile app because it typically will require someone to physically enter the transaction into their system, which can take anywhere from a few minutes to a day or two before it shows up on your statement.
The good news is this typically means it will show up on your bank statement first. Banks try to process everything in the order they are received, so if you deposited money over the counter at a bank, this is most likely going to be put through before any other transactions that are made with an ATM or mobile app.
What does counter credit mean on a bank statement?
When a counter credit or counter deposit shows up on your bank statement it just means that you made a deposit over the counter at your bank. The statement is just calling out how the money was deposited.
For example, if you deposited money through your mobile app it may be called out as a mobile deposit on your bank statement.
What is the difference between a counter credit and a deposit?
There is no difference between a counter credit and a counter deposit. Both are money that you deposited over the counter at your bank.
It may take anywhere from a few hours to a few days for that cash or check to clear, or be available in your account to be used on purchases, etc. Once you first make a deposit, you may see a line item show up on your account that shows a $0 amount next to your deposit. This is showing you that the bank has registered your deposit, but the money is not yet available for you to spend in your account.
Once the money has been deposited into your account, then the amount you deposited will show up next to the counter credit along with an updated total.
How long does it take counter credit to clear?
There are many factors that can affect how long it takes for a check to clear into your bank account. By doing a counter deposit directly to a teller, you are helping to speed up that process.
It depends on your bank
The time it takes for a counter credit or counter deposit to clear greatly depends on how efficient your bank is. Some banks are faster than others. You can find a list of the fastest banks here.
It depends on if you are depositing cash or a check
Typically, you should see the money added to your balance on the day of your deposit if it is a cashier’s check or cash. Otherwise, it may take one to two business days for that money to become available in your account. If you are depositing funds from another account at your bank this may also take one to two business days.
For checks, it really depends on the bank policies and processes of your financial institution, but it could take up to five business days for that money to be available in your account.
It depends on when you deposit the money
If you are hoping for a same-day deposit, then making the deposit as early in the day as possible will help. Deposits are processed in order of when they are received which is why your bank may have stated that it can take one to two business days for the money to show up in your account after you deposit.
Similarly, if you make a deposit right before a holiday weekend then it could take longer for the money to show up in your account.
Disadvantages of using counter credit/deposit
Can a counter credit be made into someone else’s bank account?
Yes! You can deposit a check into someone else’s bank account. Typically you just need to have the person’s name and account routing number. Some banks are starting to remove the ability to deposit cash directly into someone else’s account but many still will allow you to deposit checks.
Counter depositing vs ATM deposits vs mobile apps
A counter deposit is when you make a deposit (via cash or check) over the counter at a physical bank. This doesn’t have to be the bank you opened your account at, but it needs to be a bank within your branch.
An ATM deposit is a deposit that you made directly into an ATM. You can do this via a walk-up or drive-through ATM. To make an ATM deposit, you’ll insert your card and enter your PIN to gain access to your account. From there you’ll enter the amount of money you are planning to deposit and then insert your cash or check.
A mobile app deposit is a deposit that you make with your mobile phone. You’ll open the app on your phone and find the “make a mobile deposit” option. From there, you’ll designate which account you want the money to go into and the amount you are going to deposit (the value of the check). You will then need to take pictures of the front and back of your check and submit it. Most banks will limit the amount of money you can deposit through a mobile app.
Pros and cons of counter credit vs ATM and mobile deposits
The pros of a counter credit/deposit are that you should have access to your money quicker than if you deposit it via ATM or mobile. This can be a big plus for people that need access to their money faster.
The cons of a counter credit/deposit are that you have to actually go to your physical bank location to deposit the money within their business hours. If you’re making an ATM deposit, you can deposit the money at any time during the day as long as the bank has an outside ATM. And mobile deposits let you deposit the money from the comfort of your own home at any time of the day.
So when it comes to depositing money into your bank account, a counter credit may be better if you need quick access to your money.
Summary: What does counter credit mean?
Counter credit is simply a deposit you have made over the counter at your bank. If you’re looking for quicker access to your money, then making a counter deposit may be best for you. Otherwise, you can make ATM or mobile deposits just as safely. All deposits should show up on your bank statement.
Common bank statement abbreviations
Need more info on other bank statement info? Here are a few common bank abbreviations you may find on your bank statement.
APR: Annual Percentage Rate
APR is the amount of annualized interest you have to pay when you take out a loan such as a mortgage or a car loan. This typically includes not only the interest but also any fees that need to be paid back as well.
APY: Annual Percentage Yield
APY is the amount of money you can expect to earn annually on money deposited in an account. This will typically show up for bank savings accounts. Traditional banks usually have very low APY on their accounts. However, high yield savings accounts like Ally or Wealthfront typically provide higher yields.
ATM: Automated Teller Machine
An ATM is a machine most banks have that lets you make transactions without a teller involved. ATMs typically allow you to pull money out and make deposits up to a certain limit.
This is any time of charge you have made to your bank account.
DD/DDR: Direct Debit Payment
This is a regular payment of a fixed or variable amount that is made to your savings account.
IBAN: International Bank Account Number
This number is used when making or receiving international payments. It is a code that helps international banks know which banks to send money to. You can usually find your IBAN at the top of your bank statement.
ISA: Individual Savings Account
ISA’s are savings accounts in which you don’t have to pay taxes on the money. This is different than a regular savings account.
This is typically a transfer between accounts, say from your checking to your savings account.
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