Each day, banks perform dozens of transactions for customers. And while more people are relying on credit and debit cards, cash is still important. Because of this, banks need tools and processes to help manage the money that flows through the branch each day.
Deposit Slips and Receipts
One of the ways banks track and manage money that comes in and goes out is with deposit slips and receipts. Whenever you deposit cash to your bank, you may need to fill out a deposit slip. Some banks use digital slips that you can sign, while others will require a paper form. As the bank teller performs your transaction, they will keep a copy of that deposit slip, and they will give you a receipt.
Throughout the day, the tellers will send digital copies of the deposit slips to the main branch, which will pass that information to the Federal Reserve. If a deposit involves a check from another bank, the Federal Reserve will collect on that check and will send the money to the bank where the check was deposited.
Buys and Sells
Within the banking system, tellers use a system called buying and selling to track and manage money. If a teller takes in a large cash deposit, for example, the branch may not want to hold onto that money. Each branch typically has one person that manages the bulk of the cash for that location. So the other employees can “sell” cash out of their drawer to the main vault, which will “buy” the cash.
Every so often, the teller in charge of the bulk of the money will “buy” and “sell” from or to other branches or to the Federal Reserve. That way, the branch can have the bills they need without having more money than necessary.
Vaults and Vault Tellers
The vault and vault teller is where most money is in a bank branch. In most cases, you can’t determine who is in charge of the vault by looking at the line of bank tellers. Also, most of the money isn’t with the vault teller on the teller line. Instead, the teller will keep it in a locked vault, and that vault is probably in a separate, more secure room in the bank. That helps protect most of the bank’s money even if the tellers get robbed.
Drawer Audits
Another way bank branches track and manage money is with regular drawer audits. Depending on the bank, the manager or another employee will count the money in each teller drawer. The teller working that drawer will watch to make sure that no bills are missed or counted twice, but the manager is there to make sure an employee doesn’t lie. That can help the bank keep employees from stealing money, and randomizing audits can keep tellers on their toes since they won’t know when the audit will happen.
Management Software
When it comes to system-wide money tracking, banks can use bank management software to track new and existing accounts, loan applications and more. The right program can help banks reduce costs and get rid of unnecessary paperwork. A bank can use software to perform and manage customer transactions, and employees can use it to give balances to customers or to print account statements.
Transaction Reports
When a lot of money comes into or goes out of a bank branch, the employees will typically use a Currency Transaction Report (CTR) to track it. The report shows who brought or took the money and the amount. It requires the customer’s ID and personal information. If something goes wrong after the transaction, the bank will know who had or got the money, and when the transaction occurred. Banks can use these reports to prevent fraudulent activity now and in the future.
Running a bank involves a lot of work with money, and employees need to be able to track and manage the money that comes in and goes out. Keep these tools in mind when determining how to run your branch.
FAQs
Banks keep track of transactions on a ledger and settle with each other in bulk, crediting or debiting accounts that the different banks have between themselves. This keeps the transaction costs for banks down and makes the process as efficient as possible.
How do banks manage money? ›
Although banks do many things, their primary role is to take in funds—called deposits—from those with money, pool them, and lend them to those who need funds. Banks are intermediaries between depositors (who lend money to the bank) and borrowers (to whom the bank lends money).
How do banks keep your money? ›
Banks have two choices for your money. They put most of the money in a local Federal Reserve Bank and keep the remaining cash in a vault. The vault helps banks provide customers with quick withdrawals while they earn interest on the money in a Federal Reserve bank.
How do banks track transactions? ›
Banks leverage sophisticated rule-based detection systems that monitor transaction patterns and flag anomalies. These systems analyze factors such as transaction frequency, amount, and geographical location, comparing them against established customer profiles and historical data.
How do you keep track of money? ›
Here's how to get started tracking your expenses.
- Check your account statements. ...
- Categorize your expenses. ...
- Build a budget that works for your expenses. ...
- Use budgeting or expense-tracking apps. ...
- Explore other expense-tracking methods. ...
- Look for ways to lower your expenses.
Deposits and withdrawals were recorded by hand, and account balances were calculated using mechanical adding machines. An experienced bookkeeper could post 245 bank accounts in an hour—about 2,000 in an eight-hour workday, or approximately 10,000 per week.
What bank controls the most money? ›
The 15 Biggest Banks in the US
| Ranking | Bank Name | Assets |
|---|
| 1 | JPMorgan Chase | $3.40 trillion |
| 2 | Bank of America | $2.54 trillion |
| 3 | Wells Fargo | $1.73 trillion |
| 4 | Citibank | $1.68 trillion |
11 more rowsMar 16, 2024
Money management refers to the processes of budgeting, saving, investing, spending, or otherwise overseeing the capital usage of an individual or group. The term can also refer more narrowly to investment management and portfolio management.
Which bank manages the most money? ›
According to data from the Federal Reserve, the largest banks in terms of assets managed are Chase Bank, Bank of America, Wells Fargo, Citibank and U.S. Bancorp (the parent company of U.S. Bank).
What bank do most millionaires use? ›
The Most Popular Banks for Millionaires
- JP Morgan Private Bank. “J.P. Morgan Private Bank is known for its investment services, which makes them a great option for those with millionaire status,” Kullberg said. ...
- Bank of America Private Bank. ...
- Citi Private Bank. ...
- Chase Private Client.
Among the safest US banks, according to Global Finance's November 2022 rankings, are AgriBank, US Bank, CoBank, AgFirst Bank, and Farm Credit Bank of Texas, primarily for those in the agricultural sector.
What banks are least likely to fail? ›
Summary: Safest Banks In The U.S. Of April 2024
| Bank | Forbes Advisor Rating | Learn More |
|---|
| Chase Bank | 5.0 | Learn More Read Our Full Review |
| Bank of America | 4.2 | |
| Wells Fargo Bank | 4.0 | Learn More Read Our Full Review |
| Citi® | 4.0 | |
1 more rowJan 29, 2024
Banks and law enforcement can use transaction details, surveillance footage, and digital tracking methods to identify the perpetrator, with various results.
Can banks track money transfers? ›
You can request a trace on the transfer, and your bank will be able to tell you whether the money has been deposited into the recipient's account².
Who monitors banking transactions? ›
The OCC charters, regulates, and supervises all national banks and federal savings associations as well as federal branches and agencies of foreign banks. The OCC is an independent bureau of the U.S. Department of the Treasury.
How do banks trace stolen money? ›
How Do Banks Investigate Fraud? Bank investigators will usually start with the transaction data and look for likely indicators of fraud. Time stamps, location data, IP addresses, and other elements can be used to prove whether or not the cardholder was involved in the transaction.
Can the bank see your money? ›
Can bank tellers see your account balance? Bank tellers can see your account balance, including money coming in and going out. However, they cannot see what specifically you spent your money on.
Do banks keep track of deposits? ›
For any deposit over $100, banks must keep records for at least five years. Banks may retain these records for longer periods if they choose to do so.
Do banks keep track of cash deposits? ›
The fact that your bank will report any cash deposits or withdrawals in excess of $10,000 isn't necessarily cause for alarm. The intent is to identify and monitor where the money ends up, Castaneda says. "It should not be construed as illegal activity," he says.
