bank of first deposit (BOFD)

Definition

The bank in which a check is originally deposited to an account. If the check is drawn on the bank in which it is deposited, it is settled in house. If it is drawn on a different bank, it is processed through the Federal Reserve System or through a private clearinghouse.

Use this term in a sentence

You should try and get an account with a bank of first deposit that may give you better borriwng power in the future.

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The bank of first deposit was a really interesting thing for me to pay attention to and I realized that we were gonna be fine with our money.

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When I receive my paycheck each week it always takes a couple of days for the check to settle because the bank of first deposit I use is different from the bank my company uses.

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