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Topic 6: Understand how to pay money into
a bank account
After completing this topic, you will be able to:
explain the meaning of ‘credit’;
explain the meaning of ‘deposit’;
list the methods of paying into an account; and
accurately complete a deposit slip at a branch.
Money put into an account
In the language that banks use, ‘credit’ has two meanings:
it can mean money put into a bank account; and
it can mean money that is lent to a person.
In this topic, we are going to look only at the first meaning.
When you pay money into your bank or building society account, the bank or building
society will call the amount a ‘credit’.
The following are some examples of how the word ‘credit’ can be used when talking
about bank accounts.
I have credited your account with £25.
This means ‘I have paid £25 into your account’.
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Please credit my account with £100.
This means ‘please put £100 into my account’.
My credit balance is £500.
This means ‘I have £500 in my account’.
The word ‘deposit’ can also be used to mean money put into an account. For example:
I have deposited £47 into your bank account.
I have made a deposit of £120 into the bank account.
You might say:
I have deposited £200 for the credit of your account.
What do you think is the meaning of ‘deposited’ and ‘credit’ in this sentence?
Activity 6a
a) Suppose people were to give you money for your birthday. What are the
different ways in which they might give this money to you (for example, as a
cheque)?
b) Think about what happens when a
customer goes into a bank to pay in
some money. They will give the
money (cash, cheques, postal orders,
etc) to the member of staff sitting at
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the counter – that is, to a cashier. What details do you think the cashier will
need to know to make sure that they pay this money into the correct
account?
Paying-in slips
‘Paying-in slips’ are paper forms that account holders fill in with details about their bank
account and the amount being paid in. An example is shown below.
Paying-in slips can be used to deposit money into any account. An account holder hands
this slip of paper to the bank cashier, along with the money that they want to pay in. The
cashier types the account details into the counter terminal and checks the amount of
money against the quantity written on the slip.
Most paying-in slips are already printed with the customer’s account details and are sent
to customers as a paying-in book or at the back of the chequebook. Blank paying-in slips
are also available in bank branches.
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People who have a large number of coins to
deposit need to put them into plastic coin bags. Coins of
only one denomination, such as 10p or 50p, should go into
any one bag. Instructions written on the outside of the
bags explain how many coins can be put into the bag − for
example, £10 worth of 50p coins or £5 worth of 10p
coins.
When the account holder deposits the coins, the cashier
weighs the coin bags to check that they have the correct
number of coins in them.
Case study
Sarah has a current account with XYZ Bank. There are paying-in slips at the back of her
chequebook that look as follows.
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Why do you think there is a space for the cashier’s stamp and initials on the
paying-in slip as well as the stub?
What the items on a paying-in slip mean
Stub
(also The stub is the part of the paying-in slip to the left of the
known as a perforations. This part of the slip stays in the chequebook when
‘counterfoil’)
the account holder tears out the slip.
In this case, Sarah will complete the stub so that she has a record
of what she has paid into her account. The bank cashier uses a
rubber stamp to put the bank’s name and date on this stub. The
cashier also initials the stub. The cashier’s stamp and initials prove
that the bank has accepted the deposit on a certain day.
Date
There are two places in which the account holder writes the date
on which they pay in the money: one is on the top of the stub and
the other is on top of the paying-in slip.
Bank
and In this case, Sarah banks at ‘XYZ Bank plc’, the address of which is
branch name
‘30 High Street, Seaville, SO21 6TH’. This address is already
printed on the paying-in slip, so the bank knows where Sarah’s
account is held.
Account
This is the name on the account and helps to make sure that the
money is paid into the right account.
In this case, this is shown as ‘Ms Sarah Holmes’.
Paid in by
When the account holder pays money into their account, they
should sign their name in this box. Someone else can pay the
money in for the account holder using this form; whoever is
making the payment should then sign in this box.
Number
cheques
of The account holder will write the number of cheques that they are
depositing in this box.
Sorting
sort) code
(or This is a six-digit number that is unique to the bank branch that
holds the account. The sorting (or sort) code appears twice on
the paying-in slip: in the box labelled ‘Sorting Code Number’ and
at the bottom of the slip in digits that a computer can read.
In this case, the sort code is shown as ’76–54–32’.
Account
number
This is a number that is unique to the account at the relevant bank
branch.
In Sarah’s case, this is shown as ‘12345678’.
Cash
denominations
The table on the right side of the paying-in slip is for the amounts
of cash and the total value of cheques being paid into the account.
Denominations of cash greater in value than 10p are listed
separately on this paying-in slip. The account holder needs to fill in
the total value of each denomination that they are paying in.
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For example, if Sarah has two £5 notes, she will need to write ‘10’
(ie £5 x 2 = £10) in the box for ‘£5 Notes’.
The bank cashier will count the cash and tick off each entry in this
table to confirm that it is correct. If the account holder has made a
mistake, the bank cashier will be able to find it and ask them to
correct it.
Total cash
The account holder writes the total value of the cash that they are
paying into their account in this box. The total figure should be the
same as all of the cash denomination values added together.
Cheques, POs, The account holder writes the total value of the cheques and
etc
postal orders that they are paying in here. They should also list the
cheque numbers on the back of the paying-in slip.
Box at bottom This is where the account holder writes the total amount that
of table
they are paying in – that is, the value of all of the cash plus the
value of all of the cheques, etc.
‘Please do not
write or mark
below this line
or fold this
voucher’
The numbers below this line are written in a way that computers
can read. Banks ask customers not to write in this area because
such marks could make it difficult for the computer to read the
information provided by the bank. The preprinted slip has the
account holder’s account number and sorting code already written
in this area.
To process the payment, a computer operator adds the amount of
the payment in digits that the computer can read. This gives the
computer all of the information that it needs to process the
payment correctly.
Case study
The below is a paying-in slip that Sarah has already filled in.
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This paying-in slip shows that Sarah:
•
paid the money into her account on 9 December 2005;
•
paid in £31.87 in cash and one cheque for £17.99;
•
paid in cash in the following denominations:
− two x £10 notes = £20;
− one x £5 note;
− four x £1 coins = £4;
− three x 50p coins = £1.50;
− one x 20p coin (you will notice that Sarah has put a zero in the pounds
column to make it clear that she is paying in only 20p);
− 10p and 5p coins with a total value of £1.05;
− 2p and 1p coins with a total value of 12p (again, Sarah puts a zero in the
pounds column so that it is clear that the amount is only 12p);
•
paid in £49.86 in total.
Activity 6b
Complete another paying-in slip for Sarah using the blank slip from your teacher
and the following information.
a) The date on which she is paying in the money is 14 December 201X.
b) She is paying in:
•
one x £10 note;
•
three x £5 notes;
•
two x £1 coins;
•
six x 20p coins;
•
five x 5p coins;
•
eight x 2p coins; and
•
a cheque from her Gran for £25.
Making a payment when you do not have a preprinted
paying-in slip
Banks and building societies also offer people blank (that is, not personalised to a
particular customer) paying-in slips to deposit their money if they do not have any
preprinted slips with them. An example is below.
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The account holder needs to fill in their account details, as well as details about the
money that they are paying into the account.
How to complete a blank paying-in slip
Case study
Anthony Nesbitt wants to pay in some money, but he does
not have any paying-in slips left in his chequebook. He goes
to a branch of his bank – ABC Bank plc – and uses one of
the blank paying-in slips that are available at the counter.
Because Anthony has his chequebook with him, he knows his
account details.
He fills in the date and his account details from his
chequebook.
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Activity 6c
Anthony wants to pay in the following cash. He has no cheques to deposit.
Complete the rest of the paying-in slip for him.
•
One x £20 note
•
Two x £10 notes
•
One x £5 note
•
Two x 50p coins
•
One x 20p coin
•
One x 10p coin
Checking the cash and cheques
When the cashier takes the cash and cheques from the
person paying the money into the account, they have to
check that it is accurate and matches the amount shown
on the paying-in slip. The coins will be counted or
weighed, and the notes will either be counted by hand or
by a special machine that is programmed to count notes
accurately.
When checking cheques, the cashier will look for a
number of things, as follows.
Is it signed?
Is it dated? (It cannot be a date in the future and it cannot be more than six
months old.)
Does the amount in words match the amount in figures?
The writer of the cheque should have signed next to any mistakes or
corrections.
Does the name on the ‘payee’ line (that is, the person to whom the cheque is
made out) match the name on the account into which it is being paid?
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Review questions
1.
Why do people use paying-in slips when depositing money into their accounts?
2.
Can account holders pay money into their accounts at any bank in the high street?
3.
What are the three items of information that banks need to know so that they
can credit a specified amount of money to a particular account?
4.
Do account holders have to visit their branch to pay money between their own
accounts?
5.
Why do banks and building societies ask the people who are making deposits to
sign the paying-in slip?
6.
Tanya wants to pay the contents of her piggy bank into her account. She has a
large number of coins. What should Tanya do to make it easier for the bank
cashier to check the value of the coins that she is depositing?
7.
Can account holders make a deposit when they have run out of preprinted
paying-in slips?
9.
Assume that today is 4 January 201X. David wants to pay the following money
into his account. He has filled in part of the paying-in slip already (see the next
page). Complete the rest for him.
David is paying in:
•
one x £5 note;
•
three x £1 coins;
•
one x 50p coins;
•
11 x 20p coins;
•
six x 10p coins;
•
nine x 5p coins;
•
12 x 2p coins;
•
six x 1p coins; and
•
a cheque for £15 from his uncle.
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Learning activities
Internet
Visit www.fsa.gov.uk, select ‘Consumer information’ and ‘Products explained: Bank
accounts’. Review the information about paying into an account.
Group
•
Collect paying-in slips from providers in your area. Compare the different designs
and decide which are easiest for customers to complete. Then design your own
paying-in slip for a fictitious provider called ‘Dolphin Bank’. Make sure that you
include all of the information that the bank will need to process a payment
correctly.
•
Divide into two groups. Using imaginary money, one group will complete paying-in
slips for deposits and hand these to the other group, which is acting as cashiers.
The cashiers check the deposits against the paying-in slips and accept them if they
are correct. The first group might, however, want to make deliberate ‘errors’ for
the second group to find.
Individual
If you have an account, make sure that you know the different ways in which you can pay
money into it. If you do not have an account yet, decide which paying-in methods sound
easiest to you.
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Key points for Topic 6
You should now understand:
the meaning of ‘credit’ and ‘deposit’;
the two methods of paying into an account;
how to complete a paying-in slip accurately;
the main features of a paying-in slip;
how to pay into your account if you do not have a preprinted paying-in slip.
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