What Does Counter Credit Mean On A Bank Statement?

By Zach Buchenau

Last Updated: December 12, 2020

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What Does Counter Credit Mean On A Bank Statement? | Be The Budget

If you’ve ever taken the time to read through your bank statements, you’ve likely run into the phrase, ‘counter credit’. And while an unidentified phrase on your bank statement might induce a bit of anxiety, in this case, you’ll be happy to hear that there is nothing to worry about. So, what does counter credit mean on your bank statement?

In short, the term counter credit–or counter deposit as it’s often called–refers to a deposit that you made in-person (i.e. over the counter) at your bank or financial institution. In simpler terms, whenever you make an in-person deposit through a teller at your bank, the transaction may show up as a ‘counter credit’ on your bank statement.

See, like I said, there was nothing to worry about.

But since we’re on the subject, and since you’re taking a deeper dive into your bank statements, I think it’s worth discussing a couple more things. In particular, what are the benefits of a counter deposit? And what are the disadvantages?

Let’s jump in!

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Benefits Of A Counter Deposit

When it comes to banking, I’ll admit, there is something very reassuring about doing things in-person. Whether I’m heading through the drive-through to deposit a check, or standing at the counter talking to a teller, there is a certain level of confidence that you just can’t get through online banking.

Now, please don’t take that as a dig against making mobile deposits, setting up bank accounts completely online, or handling your money through your online banking app. I absolutely love those things, and you should definitely take advantage of them. In fact, both our #1 recommended savings account, and our #1 recommended checking account are both online bank accounts.

All I’m saying is that there is something nice about the human interaction, and knowing that your money is being handled by a professional. This is in contrast to something like depositing a check or cash through an ATM. I don’t know about you, but that one always makes me a little nervous.

Maybe it’s just baggage from all the arcade games that ate my tokens when I was a little kid, but every time I deposit cash through an ATM I hold my breath in hopes that it doesn’t swallow my money like a faulty ski-ball machine. (In all likelihood, this will never happen to me, or you, but I’m still not sure if I’ll ever feel fully comfortable with this form of deposit.)

And that’s really the main benefit of a counter deposit, (or counter credit as it might be labeled on your bank statement).

When you walk into a bank and make a deposit over the counter, you get the peace of mind that comes from doing things in-person. There’s no ATM just waiting to eat your money. No mobile banking app that could glitch and cause you financial trouble (also a very unlikely scenario). Just an old-fashioned person-to-person deposit. It’s simple and elegant.

What Does Counter Credit Mean? | Be The Budget

Disadvantages Of A Counter Deposit

Ok, so now that I have laid out the main benefits of a counter deposit, let’s dive into a few of the disadvantages.

At the top of the list, we have the inconvenience factor. These days, between PayPal, Venmo, Zelle, Mobile Deposits, Direct Deposits and ACH Transfers, there’s almost no reason to ever make a deposit at the bank.

Seriously, on the rare occasion that someone whips out their checkbook (what is this, 2005?) and pays you the old-fashioned way, you can just grab your phone, snap a quick photo and deposit the check before you take another step.

With that kind of convenience, why would waste the gas it takes to drive to the bank and do the same thing in-person? (Well, I guess it would be for the reasons I mentioned earlier. But that’s beside the point.)

On top of all that, whenever you make a counter deposit, you are risking one of my least favorite things on this planet… waiting in line. Ok, call me impatient, but it seems like every time I go to the bank to make a deposit, I end up stuck behind somebody trying to count all the coins they’ve saved-up for the last 30 years.

Look, I appreciate all your hard work saving all that money, but I have a meeting in 30 minutes, and I still want to hit up Chick-fil-A for lunch (not the drive-through, of course, because, talk about a line). I digress.

Getting back to the main point, counter deposits are much less convenient than the other options available to us these days. Still, I’ll take the inconvenience of a line over the thought of an ATM eating my money.

Quick Summary

To sum things up, when you see the phrase ‘counter credit’ on your bank statement, you have nothing to worry about. It’s just a reference to an in-person deposit made ‘over the counter’ at your bank or financial institution.

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Zach Buchenau

About The Author:

Zach Buchenau is a self-proclaimed personal finance nerd. When he isn't writing about budgeting, getting out of debt, making extra money, and living a frugal life, you can find him building furniture, fly fishing, or developing websites. He is the co-founder of BeTheBudget, and Chipotle's most loyal customer.

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