Deposit - Financial definition
Concise definition of the term deposit
A deposit in banking and finance refers to the placement of funds into an account, typically held by a financial institution.
Comprehensive definition of the term deposit
Deposits encompass various financial instruments where individuals or entities place funds into accounts held by banks or other financial institutions, such as savings accounts, checking accounts, and certificates of deposit (CDs). Deposits serve as a fundamental aspect of the banking system, providing liquidity to financial institutions and allowing for lending activities, while offering depositors security and potential interest earnings. Deposit products may vary in terms of accessibility, interest rates, and terms, catering to diverse needs and preferences of depositors.