Deposit

Deposit may refer to:

See also

Deposit account

A deposit account is a savings account, current account or any other type of bank account that allows money to be deposited and withdrawn by the account holder. These transactions are recorded on the bank's books, and the resulting balance is recorded as a liability for the bank and represents the amount owed by the bank to the customer. Some banks may charge a fee for this service, while others may pay the customer interest on the funds deposited.

Major types

Legal framework

Subject to restrictions imposed by the terms and conditions of the account, the account holder (customer) retains the right to have their money repaid on demand. The customer may or may not be able to pay money into or out of the account by cheque, internet banking, EFTPOS or other channels, depending on those terms and conditions.

The banking terms "deposit" and "withdrawal" mean a customer paying money into, and taking money out of, the account. From a legal and financial accounting standpoint, the term "deposit" is used by the banking industry in financial statements to describe the liability owed by the bank to its depositor, and not the funds that the bank holds as a result of the deposit, which are shown as assets of the bank.

Deposit (finance)

A deposit is money placed with some other entity. It is a credit for the party who placed it, and it may be taken back (withdrawn), transferred to some other party, or used for a purchase. It is often used with respect to banks, where deposits are usually their main source of funding.

Individuals and corporations need money to pursue their daily business. They place the money on deposit to earn interest, using the money market. Types of deposits are:

See also

References