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Home Blog 2024 novembre 27 DEPOSIT definition in the Cambridge English Dictionary

DEPOSIT definition in the Cambridge English Dictionary

Deposits made into checking accounts are transaction deposits, indicating the funds are liquid and immediately available. Generally, a person needs to deposit a certain amount to open a bank account. Hence, the money transferred by investors to checking or savings accounts at credit unions or banks is a deposit.
Typically, a bank will not hold the entire sum in reserve, but will lend most of the money to other clients, in a process known as fractional-reserve banking. These « physical » reserve funds may be held as deposits at the relevant central bank and will receive interest as per monetary policy. The bank’s financial statement reflects the economic substance of the transaction, which is that the bank has borrowed $100 from its customer and has contractually obliged itself to repay the customer according to the terms of the agreement. Because money is available on demand, these accounts are also referred to as « demand accounts » or « demand deposit accounts », except in the case of NOW (negotiable order of withdrawal) accounts, which are rare checking accounts that require a seven-day notice before withdrawals.
If you deposit money into a standard deposit account at an FDIC-insured financial institution, your money will be covered by FDIC insurance up to FDIC limits. You might open a checking account and set up direct deposit to ensure your paycheck is deposited into your account each pay period. Generally, demand deposits pay very little interest or no interest at all since the lock-in periods are shorter than time deposits. When the term period ends, account holders can either withdraw the funds or renew the deposit to be held for another term. Deposit of There’s a 10 cent deposit/deposit of 10 cents on the bottle, which you get back when you return the empty bottle. By transferring the ownership of deposits from one party to another, banks can avoid using physical cash as a method of payment.

Time Deposit

You can typically fund your account via a digital transfer, cash or check. Upgrading to a paid membership gives you access to our extensive collection of plug-and-play Templates designed to power your performance—as well as CFI’s full course catalog and accredited Certification Programs. The Structured Query Language (SQL) comprises several different data types that allow it to store different types of information…
Deposit on Their parents wanted them to use the money for a deposit on a condo. Deposit of The flood left a thick deposit of mud over the entire first floor of the house. Deposit something in something I deposited $500 in my account this morning. To reduce the risk to depositors of a bank failure, some bank deposits may also be secured by a deposit insurance scheme, or be protected by a government guarantee scheme. It may also have the purpose of reducing the extent of depositor losses in the event of bank failure. In this way, commercial banks are allowed to increase the money supply (without printing currency).

Time Deposit

A time deposit account is an interest-bearing account that allows the depositor to accumulate money at higher rates of interest than the standard savings account. A person cannot withdraw money from a time deposit account for a fixed term or must pay a penalty should he/she need to withdraw funds before the term ends. Pay a deposit We paid a deposit of $5,000 on the house, and paid the balance four weeks later. The customer’s checking account balance has no banknotes in it, as a demand deposit account is simply a liability owed by the bank to its customer. In the financial statements of the bank, the $100 in currency would be shown on the balance sheet as an asset of the bank and the deposit account would be shown as a liability owed by the bank to its customer. Subject to restrictions imposed by the terms and conditions of the account, the account holder (customer) retains the right to have the deposited money repaid on demand.

Demand deposit

First, a deposit is the process of transferring a sum of money to another entity to be held in its custody. Any transaction processed to transfer money to an entity for safeguarding can be referred to as a deposit. Deposit is a term used to denote the money kept or held in any bank account, especially to accumulate interest. Leave something as a deposit The sales person says if I leave $25 as a deposit, they’ll keep the dress for me.

  • Typically, a bank will not hold the entire sum in reserve, but will lend most of the money to other clients, in a process known as fractional-reserve banking.
  • Deposit of The flood left a thick deposit of mud over the entire ground floor of the house.
  • In banking, the verb « deposit » means a customer paying money into an account, and the verb « withdraw » means taking money out.
  • Some banks charge fees for transactions on a customer’s account.
  • Citibank Checking accounts don’t require an initial minimum deposit, but accounts with a 0 balance for 90 calendar days are subject to closure.
  • The terms and conditions may specify the methods by which a customer may move money into or out of the account, e.g., by cheque, internet banking, EFTPOS or other channels.

Additional Resources

Transactions on deposit accounts are recorded in a bank’s books, and the resulting balance is recorded as a liability of the bank and represents an amount owed by the bank to the customer. A deposit account is a bank account maintained by a financial institution in which a customer can deposit and withdraw money. Normally any money deposited to a bank becomes property of the bank, for which it is liable to return the same monetary value, but not the same money. Pay a deposit We paid a deposit of £5,000 on the house, foxyflush casino and paid the balance four weeks later.

  • A deposit account for the purpose of securely and quickly providing frequent access to funds on demand, through various different channels.
  • Deposits made into checking accounts are transaction deposits, indicating the funds are liquid and immediately available.
  • Upgrading to a paid membership gives you access to our extensive collection of plug-and-play Templates designed to power your performance—as well as CFI’s full course catalog and accredited Certification Programs.
  • The customer’s checking account balance has no banknotes in it, as a demand deposit account is simply a liability owed by the bank to its customer.
  • The bank’s financial statement reflects the economic substance of the transaction, which is that the bank has borrowed $100 from its customer and has contractually obliged itself to repay the customer according to the terms of the agreement.
  • When you deposit money into a bank account, there may be a delay before those funds are available to use.

Deposit accounts can be savings accounts, current accounts or any of several other types of accounts explained below. A special deposit is one made under an agreement to hold the deposit separately from the bank’s assets, so that the same assets can be returned. 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 government closed banks for a week, trying to prevent a run on deposits. Ask for/request a deposit Normally someone selling a house would ask for a deposit of at least 5%. The apartment rents for $1200 a month, and we want one month’s rent for a deposit.

How banking works

Deposit of The flood left a thick deposit of mud over the entire ground floor of the house. Deposit something in something I deposited £500 in my account this morning.