This article relies largely or entirely on a single source. (October 2017)
A deposit is the monetary amount that is placed with some entity.
The deposit is a credit for the party (individual or organization) who placed it, and it may be taken back (withdrawn), transferred to some other party, or used for a purchase at a later date.
This financial concept is often used with respect to banks, where deposits are usually their main source of funding.
Types of deposits are:
- 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
- Term deposit (or time deposit), bear a fixed time and fixed interest rate
- Overnight lending occurs usually from noon to noon, using a special rate to give as security or in part payment.
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