This section is from the book "Elementary Banking", by John Franklin Ebersole. Also available from Amazon: Elementary Banking.
The note teller also receives and accounts for certain funds for the bank. The proceeds of city collections usually come into the hands of the note teller. (City collections are checks and drafts drawn on business firms and on banks not members of the clearing house; they may also be notes left with the bank for collection. They are collected by messengers of the banks receiving them). He may also, in some banks, receive the money and checks that come through the mail. All payments made on notes discounted or purchased by the bank, or deposited for collection by customers, are made to the note teller unless the bank assigns this duty to the discount department or the collection department. In these days of banking by mail many banks receive such a large volume of deposits in the morning mail that a special mail teller is necessary to handle this work. His work is similar to that of the receiving teller except that he acknowledges receipt of remittances by return mail. His work may require a large department which handles incoming mail all day, taking care of the remittances and distributing the other mail to the proper departments. In most banks, however, the mail teller's activity ends before noon, and he is then free to work with some other department, probably the note teller. Different Kinds Of Deposits. - Deposits are either "special" or "general." A "special" deposit is created whenever a particular thing is delivered to a bank with the understanding that the identical thing is to be returned upon demand - bonds and jewels are examples. They are given to the bank for safe keeping. The bank may or may not receive any compensation for taking care of the valuables deposited with it, but whether it does or not, it must take reasonable care of them, and will be liable for loss resulting from its negligence. "General" deposits are ones which are to be repaid on demand in money, and the title to the money deposited passes to the bank. A deposits $1,000 cash with the bank. He has a right to get $1,000 in return, but not the same coin or currency. In the case of general deposits the relation of banker and depositor is that of debtor and creditor. General deposits must be made with money or the rights to money; and when repaid they may be paid in any form of legal tender money. Such general deposits may be repaid in part or in full according to the wishes of the depositor. General deposits may be either "demand" or "time." "Demand" deposits, as the term indicates, may be withdrawn in whole or in part at any time. "Time" deposits, however, may not be withdrawn within a certain specified period. Section nineteen of the Federal Reserve Act provides that "demand deposits, within the meaning of this Act, shall comprise all deposits payable within thirty days." "Savings" accounts, according to the Federal Act, include those in respect to which the following conditions are accepted by the depositor at the time the account is opened: (a) The pass book, certificate, or other form of receipt, must be presented to the bank whenever a deposit or withdrawal is made; (b) the depositor may at any time be required by the bank to give notice of an intended withdrawal not less than thirty days before a withdrawal is made. Savings banks differ in many respects from commercial banks which deal in checking accounts. Very often the same bank has both commercial and savings departments. General deposits may also be classified as "individual," "bank" or "government." "Individual" deposits are rights to draw on the bank for funds, by an individual, firm or corporation, either on demand or upon notice given a certain number of days in advance. "Bank" deposits are obligations of one bank to another bank or other banks, and are often entered on a bank's books as "due other banks," but this may be divided, in a more detailed statement, into "due National banks," "due State banks," "due trust companies and savings banks." "Government" deposits are merely funds owing to the Government.