Deposit (finance)

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A deposit is the act of placing cash (or cash equivalent) with some entity, most commonly with a financial institution, such as a bank.

The deposit is a credit for the party (individual or organization) who placed it, and it may be taken back (withdrawn) in accordance with the terms agreed at time of deposit, transferred to some other party, or used for a purchase at a later date.

Deposits are usually the main source of funding for banks.[citation needed]


A deposit may take a number of forms, including:

Demand deposit[edit]

A demand deposit is a deposit which is deposited for regular withdrawal like saving bank account or current bank account etc.

  • Transactional account (checking account or current account, by country), the depositor has the right to use the money at any time, sometimes short notice periods are agreed. Also called call deposit or sight deposit.

Time deposit[edit]

Deposits which are kept for any specific time period are called time deposit or often as term deposit.

See also[edit]


  1. ^ term deposit, Investopedia, accessed 2012-05-14.
  2. ^ [1], Deposit your trust in Fixed Deposits,