BOFD, What is this?
Answer by Mary Beth Guard, BOL Guru Guru BIOS
Question: What is a bank of first deposit?
Answer: The Bank of First Deposit (BOFD) is the first financial institution to which a check or item is negotiated. The term is somewhat misleading because it applies even where the institution gives its customer cash, rather than accepting the item only for deposit.
So, if Andy writes me a check and I take it to my bank to cash it or deposit it, my bank is the bank of first deposit.
BankersOnline is a free service made possible by the generous support of our
advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all
banking professionals. Support our advertisers and sponsors by clicking
through to learn more about their products and services.