A person dropping off a check at the bank counter

What Is Counter Credit On Your Bank Statement?

Published on: October 18, 2023

Updated on: March 29, 2024

When it comes to a counter credit, it's simple to become concerned by unfamiliar terminology on your bank statement. Counter credit on a bank statement is a cash deposit made inside the bank at the teller window.

Key Takeaways

Counter credit is an in-person cash deposit at a bank branch, not through an ATM or mobile check deposit.
The term "counter" in "counter credit" refers to the bank counter, signifying that you physically deposit funds with a teller.

What Is Counter Credit on a Bank Statement?

Counter credit on a bank statement refers to cash or checks deposited into your account at the teller window inside the bank, as opposed to an ATM or a mobile check deposit. Counter deposits slips are conducted in person at a bank with a personal teller, where you fill out a deposit slip, hand it to the teller in person, and receive a receipt for the transaction.

Why Is It Called Counter Credit?

It’s easy to look at this term to mean the other kind of counter, meaning “the opposite,” and wonder, "What is counter credit on a bank statement?" but the word "counter" in "counter credit" refers to the counter at a bank. In essence, it’s called counter credit because you put credit in your account with the teller in person.

What's the Difference Between Counter Credit and a Deposit?

A counter credit and a deposit are both ways to add funds to your bank account, but they differ in how they are processed and the availability of funds.

Counter Credit. Processed by a teller at the bank counter, with funds usually available immediately.
Deposit. Can be made through various methods such as at a teller, ATM, direct deposit, or mobile deposit, with fund availability varying by method.

	Counter Credit	Deposit
Definition	A transaction where funds are added to your account by a teller at the bank counter.	A general term for adding funds to your account through various methods (teller, ATM, mobile, or direct deposit).
Where it's Processed	Always processed in person at a bank by a teller.	Can be processed at a teller, ATM, mobile app, or via direct deposit.
Method of Deposit	Handing over cash or checks to a bank teller.	Cash, checks, or electronic funds transfer via various deposit methods (teller, ATM, mobile, etc.).
Fund Availability	Typically, funds are available immediately after processing.	Availability depends on the method. Immediate availability for cash at the teller, but mobile or check deposits may have holds.
Verification Process	Teller verifies the deposit immediately during the transaction.	Verification may depend on the method. Some may involve holds (e.g., checks, mobile deposits).
Convenience	Requires visiting a physical bank branch.	More flexible, allowing for in-person, electronic, or ATM deposits.
Deposit Limitations	Limited to what can be deposited in person (cash, checks).	Limits may vary by method (ATMs, mobile deposits may have dollar or item restrictions).
Best For	Those who want immediate access to deposited funds and prefer in-person transactions.	People looking for flexibility and convenience in depositing funds through multiple channels.
Common Use	Quick access to funds, especially when depositing cash at a bank.	Regular deposits, including paychecks (via direct deposit), checks, and cash deposits through various methods.

What Is Counter Service in a Bank

Counter service in a bank, often referred to as "counter credit," is a banking service that involves face-to-face transactions between customers and bank tellers. Customers visit the bank's physical branch and interact directly with bank personnel for various financial transactions. These transactions can encompass a wide range of services, such as depositing and withdrawing funds, cashing checks, making bill payments, and even seeking financial advice.

Counter service plays a vital role in providing a personal touch to banking, allowing customers to address their specific financial needs with the assistance of knowledgeable bank staff. This service offers a level of trust and reliability that some customers find reassuring, especially for significant financial transactions.

How Do You Make a Counter Deposit?

Counter deposits are conducted in person at a bank with a teller. To make a counter deposit, you’ll need to follow these steps:

Create a bank account and visit the bank where you have an open account.
Fill out a deposit slip with the necessary information.
Give the cash and deposit slip to a teller.
Get a receipt of the transaction for your records.
Check through your online banking portal to see if the money was deposited properly.

Online-only banks like Ally Bank do not offer countercredit for obvious reasons. You may want to consider this factor when choosing a bank. If you don’t carry cash around, then counter credit isn’t something you’re likely to use at all. On the other hand, an online bank is ideal if you need cash for day-to-day activities.

You can also ask your employer to pay you via check if you prefer not to carry as much cash around.

How To Complete a Deposit Slip

If you’re unfamiliar with how to fill out a deposit slip, you can always ask a teller to help you. Generally, banks have deposit slips and pens at a dedicated table.

Just be sure you fill out the slip for the correct type of account, as banks usually have slips for both checking and savings accounts. The deposit slip will include a space for the account number.

If you don’t know it, you can ask the teller, and they will provide it for you as long as you have your ID with you. When the slip is finished, you’ll just need to present it to the teller alongside the cash or checks you are depositing.

Where Does Counter Credit Appear on My Account?

When you pull up your online banking portal or use a mobile app, you’ll notice the term “counter credit” next to the $100 deposit you made under your recent transaction. You’ll also see the term “counter credit” next to the deposit amount on your monthly bank statement.

The same is true if you deposit multiple bills at the same time. If you deposited three $50 bills and two $100 bills, for example, you wouldn’t have 5 separate counter credit marks next to your deposits. You would instead just have one deposit of $350 with “counter credit” next to it.

Denoting transactions like this helps resolve discrepancies in the statement and account and helps clarify —both for you and your bank’s peace of mind — how the transaction was made.

Why Is Counter Credit Still Around?

With the advent of new ways to deposit and withdraw money, such as through ATMs or mobile apps, counter credit may seem redundant to some people, especially given that the in-person process to do anything at a bank can be laborious. However, many still prefer the old-fashioned method of walking into a bank and depositing directly at a counter, and for good reason.

It’s a secure, simple way to make sure the money gets into the intended bank account. Moreover, customers who are depositing very large sums would not be able to use online methods or even an ATM (depending on their bank's individual limit). It also may add some peace of mind to deposit a large amount directly into a teller's hands.

This distrust may also extend to ATMs, which is a fair concern given that they are a little riskier than handing your money directly to someone. In addition, ATMs usually only accept money in $20 increments and limit the number of bills you can put in during one transaction. Counter credit circumvents this problem and the risk of using technology because it allows two people to count and accurately confirm the right amount of money.

Some people may also have trouble understanding technology or apps and prefer face-to-face communication so that they can ask questions.

Is Counter Credit Faster Than Other Deposit Methods?

It depends. Counter credit involves visiting a bank in person and waiting in line, which is usually slower than depositing a check online or using an ATM. This can be especially true during busy times, such as when people receive their paychecks or when bank staff are on lunch breaks, which can slow down service.

While an ATM or mobile deposit may be faster, counter credit provides immediate confirmation of your deposit by a teller, which can be beneficial for those needing assurance of their transaction. It's always good to be mindful of the different services banks offer to help you deposit your money promptly.

Other Alternatives to Counter Credit

Alternative	Description	Convenience	Fund Availability	Best For
ATM Deposit	Deposit cash or checks into your account through an ATM machine.	High: Available 24/7 at ATMs.	Cash deposits are often immediate; checks may have a hold.	Those who need to deposit outside of banking hours.
Mobile Deposit	Use a banking app to deposit checks by taking a photo of the check.	Very High: Anytime, anywhere via smartphone.	Varies: Checks may take 1-2 business days to clear.	People who prefer remote banking and depositing checks.
Direct Deposit	Funds (e.g., salary, government payments) are electronically transferred into your account.	Very High: Automatic and recurring.	Immediate once processed; no need to visit a bank.	Employees or beneficiaries of recurring payments.
Online Bank Transfer	Transfer funds between your accounts at different banks or send money to others electronically.	High: This can be done from home or on the go.	Varies: Usually 1-2 business days, faster for same-bank transfers.	People moving funds between accounts or sending money digitally.
Wire Transfer	An electronic transfer of funds between banks, often for large amounts or international payments.	Medium: Requires setup and fees.	Same-day or next-day availability, depending on the bank.	Those sending large sums or international payments quickly.
Check-by-Mail Deposit	Send checks through the mail to your bank for deposit.	Low: Requires mailing time and postage.	Longer: Delays due to mailing time and processing hold on checks.	People without immediate access to a bank or ATM.
Bank Drop Box Deposit	Leave cash or checks in a secure drop box at a bank, processed later by the bank staff.	Medium: Requires visit to a bank but can be done after hours.	Varies: May take a day or more to process.	Those depositing after business hours but who still want to avoid teller lines.

Why Does It Show Up as Credit on an Account?

The bank refers to this deposit as a credit simply because the money is "credited" to your account. It denotes that the money came from you and belongs to you, not to the bank.

So, the "counter" part refers to the physical interaction between you and the teller, while the "credit" part indicates that it is credited to your account.

Is Counter Credit Bad for My Account?

Counter Credit doesn’t mean anything good or bad on an account. As mentioned, it simply denotes how the money was put into your account and doesn’t indicate any change in the account status other than the amount of money available.

Using a counter credit deposit has no impact on the account at all, and there are no fees or penalties associated with depositing in person.

When Does Counter Credit Clear?

Money deposited at the counter will usually clear immediately, allowing you to use it as you need. That’s because the bank doesn’t need to do any authorization or verification other than the deposit slip you fill out at the bank.

Of course, each bank has its own set of rules, and you can always ask a teller when the money will be available. If the money is still showing as pending after 24 hours, you can consider calling or visiting the bank to ask when the money will be available.

Is There a Limit to Counter Credit?

Banks will often impose limits both on how often you can deposit and how much you can deposit at any given time. There may be additional restrictions regarding large sums of money. Each bank is different, and it’s important to be aware of your bank’s rules if you need to deposit a large sum of money.

Alternatives to Counter Credit

When you need to deposit funds into your bank account but prefer not to visit a teller for a counter credit, there are several convenient alternatives available. Each method varies in terms of how the deposit is made and how quickly the funds become available.

The table below outlines some common alternatives to counter credit, along with descriptions and typical fund availability times.

Alternative Method	Description	Typical Availability of Funds
ATM Deposit	Deposit cash or checks using an ATM	Same day to next business day
Mobile Deposit	Deposit checks using a banking app on your phone	1 to 3 business days
Direct Deposit	Automatic electronic deposit from employers or other sources	Immediate to same day (varies by bank)
Mail Deposit	Mail checks to the bank for deposit	3 to 10 business days, depending on the location of your bank
Online Transfer	Transfer funds from another account electronically	Same day to next business day
Bank-by-Mail	Sending deposits via mail using provided envelopes	3 to 7 business days
Night Deposit Box	Deposit cash or checks in a secure drop box at the bank	Next business day
Electronic Funds Transfer (EFT)	Transfer funds between banks electronically	1 to 3 business days