Deposit (finance)


A deposit is the act of placing cash with some entity, most commonly with a financial institution, such as a bank.
The deposit is a credit for the party who placed it, and it may be taken back 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.

Types

A deposit may take a number of forms, including:

Demand deposit

A demand deposit is a deposit which is deposited for regular withdrawal like saving bank account or current bank account etc.
Deposits which are kept for any specific time period are called time deposit or often as term deposit.