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Deposit

A deposit account is a current account at a banking institution that allows money to be deposited and withdrawn by the account holder, with the transactions and resulting balance being recorded on the bank's books. Some banks charge a fee for this service, while others may pay the customer interest on the funds deposited.

Although restrictions placed on access depend upon the terms and conditions of the account and the provider, the account holder retains rights to have their funds repaid on demand. The customer may or may not be able to pay the funds in the account by cheque, internet banking, EFTPOS or other channels depending on those provided by the bank and offered or activated in respect of the account.

The banking terms "deposit" and "withdrawal" tend to obscure the economic substance and legal essence of transactions in a deposit account. From a legal and financial accounting standpoint, the term "deposit" is used by the banking industry in financial statements to describe the liability owed by the bank to its depositor, and not the funds (whether cash or checks) themselves, which are shown an asset of the bank. For example, a depositor opening a checking account at a bank in the United States with $100 in currency surrenders legal title to the $100 in cash, which becomes an asset of the bank. On the bank's books, the bank debits its currency and coin on hand account for the $100 in cash, and credits a liability account (called a demand deposit account, checking account, etc.) for an equal amount. (See double-entry bookkeeping system.) In the audited financial statements of the bank, on the balance sheet, the $100 in currency would be shown as an asset of the bank on the left side of the balance sheet, and the deposit account would be shown as a liability owed by the bank to its customer, on the right side of the balance sheet. The bank's financial statement reflects the economic substance of the transaction -- which is the bank has actually borrowed $100 from its depositor and has contractually obliged itself to repay the customer according to the terms of the demand deposit account agreement. To offset this deposit liability, the bank now owns the actual, physical funds deposited, and shows those funds as an asset of the bank.

Typically, an account provider will not hold the entire sum in reserve, but will loan the money at interest to other clients, in a process known as fractional-reserve banking. It is this process which allows providers to pay out interest on deposits.

Deposit

 

Deposit Knowledge Base

Deposit....?

Hi, I am about to move out of my first apartment into another one and I put down a $200 deposit when I moved in. I plan on fixing any repairs such ...

How do you deposit a check made out to multiple people?

Here's the scenario: You live in an apartment complex with 3 people. You pay a deposit with your roommates when you move in. When you move out, your...

Is direct deposit an option for the stimulus check if you used turbo tax?

I used turbo tax to file my taxes and they said I'd have gotten my stimulus check by now, but it hasn't been deposited or hasn't come in the mail. I t...

My bank requires a direct deposit to earn rewards. How can I set this up without involving an employer?

I work for myself, so I don't have a regular paycheck for which I could set up a direct deposit. I have never used direct deposit before, so I don't ...

How does the deposit work when buying a house?

I'm selling my house and as part of the sale I've agreed to pay the 5% deposit for the buyer. I would have thought that the deposit would have been b...

Is having my tax refund directly deposited through Turbo Tax different than regular direct deposit?

The reason I ask is that I have not received my economic stimulus check yet and my SSN is under 19 (so I was supposed to receive the direct deposit by...

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Bank Deposit

 

Bank Deposit Knowledge Base

bank deposit?

I just got my boyfriends check from his work. It is signed and i have a deposit slip. If i fill it out will the bank let me deposit his check into his...

problems that will occur by telling a teller in a bank to make a bank deposit ?

Consider the problem of making a bank deposit but not having the deposit credited to your account. Compare the likelihood of this happening with vario...

What will happen to the interest earned in a Certificate of Deposit if a bank closes?

Washington Mutual has the highest 1 year Certificate of Deposit of 5%. I understand that FDIC insures the money. In some countries, although bank d...

What happens when you make bank deposit error?

ok I have PC financial bank. The screen for deposit comes up saying to place the envelope, with your cheque, in the bank machine. Then it shows you th...

How safe is it to pay with Bank Deposit Express on eBay?

Is it safe to pay with Bank Deposit Express on eBay? What could the seller do with my bank details after i send the payment? And what is the differenc...

What details are needed to deposit money in to a Halifax bank?

Someone is buying something from me online and I have asked them to pay via bank deposit. I do not wish to give my name and was wondering if this was ...

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Term Deposits

 

Term Deposits Knowledge Base

What is global financial crisis ? What harm can be to the personal small term deposits in the bank ?

They said if a bank declares "bank-rupt" all those personal small Term Deposits of hard earnings of poor people will be vanished. Please ans...

Do you think term deposits provide high returns for your savings?

1. Do you think term deposits provide high returns for your savings? 2. What is a term deposit? 3. Can you please explain the question? I don't ...

What are the tax implications for term deposits? Am I better off with shares or regular savings?

If I have a small pile of cash, is it better to put it into savings, term deposits, shares - of which i know nothing - or managed funds? I believe s...

In general for banks, what are the differences between long term and short term deposits?

In general for banks, what are the differences between long term and short term deposits?

which aussie bank offers the highest interest rates in term deposits?

Ive been looking around for good interest rates on term deposits lately although many of the good ones ask you to open up a seperate account that need...

what do you think about fixed term deposits?

is now a good time to open a fixed term deposit account? what are the chances the interest rate will increase within the next year?

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Fixed Deposit

 

Fixed Deposit Knowledge Base

Fixed Deposit???

What does 17% and 18.25 aer mean...........I know what the 17 % is but what is the 18.25 aer mean how much will i get if i deposit 80000 for 3 months ...

How married people with interest from joint fixed deposit account file tax return?

We are NRIs and we have joint fixed deposit accounts in India. Which form we should use to file tax return. Is it possible to file jointly. If it is f...

What are the highest interest rates for savings and fixed deposit?

What are the highest interest rates for savings and fixed deposit and in which bank? Which country? Can foreigner open accounts in these banks?

How Interest on fixed deposit after due date is calculated?

How interest is calculated on Fixed deposit account after due date? Is the banker obliged to pay interest after the due date if the depositor does no...

What is the bank in UAE that gives the highest rate on fixed deposit?

What is the bank in UAE that gives the highest rate on fixed deposit? A deposit of USD. And is it true they charge 1% of the amount because it is in f...

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Deposit Accounts

 

Deposit Accounts Knowledge Base

When are VA checks being deposited to direct deposit accounts for January benefits?

When are January VA benefit checks to be deposited to direct deposit accounts?

Why do banks allow new deposit accounts to be funded online using a credit card?

With some banks, a person can open a new savings account online and fund it using their credit card without having to pay a cash advance fee or anythi...

Is time deposit accounts better than savings account?

i'm an overseas filipino worker and i'm planning to open an account i want to know which kind of account best suites me... and which bank ofers the be...

What banks or credit unions have the best rates on CD, Cerificate of Deposit Accounts?

I have 5k to put in but dont know where to go I am in California. We have Wells Fargo, Wachovia, Bank of the West ,etc etc I dont care where I go as l...

Money market deposit accounts are included?

Money market deposit accounts are included in: 1. ) M1 only. 2.) M2 only. 3.) neither M1 nor M2. 4.) both M1 and M2.

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Home Deposit

 

Home Deposit Knowledge Base

Who can help me with a rental home deposit?

I am getting a divorce and living at home with my parents. I am on a fixed income right now..I was wondering if there was any place anyone knows of th...

Is it possible to get our new home deposit back?

Here's the situation-- we put a deposit to purchase a new home with a prominent builder last november. The builder prequalified us and told us we woul...

I would like to know wether I am eliglble for a no deposit home loan with credit default?

I would like to know wether I am eliglble for a no deposit home loan with credit default? If so I would like to know what the interest rates would be ...

Is it unsafe to get a home loan with no deposit?

I would really like to take advantage of the first home buyers grant but will not have a deposit in time. I have looked at no deposit home loans but h...

Is it possible to get our home deposit back on a home that has found to have termites?

We had put up a .25% deposit to secure the house and send a building inspector to see if the house is ok, and they found termites on the property. We...

When you get payed for doing a survey how does it work? they send cash home or deposit?

I might sound funny but I'm kind of lost on the subject. When the company actually pais you, how do they do it? Send cash home or deposit in the bank...

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Deposit Guarantee

 

Deposit Guarantee Knowledge Base

How does the deposit guarantee apply to linked accounts?

Hello, My bank offers me a current account and linked savings and brokerage accounts. In this situation, would the GBP 50,000 guarantee on depo...

Govt have guarantee all deposit in Singapore, which bank they guarantee and till how much the value?

does it include Standard Chartered Bank, Hongleong finance, ocbc? And till how much they will guarantee is it 100% of the deposit amount or...? is it ...

Does paying the deposit guarantee you a apartmnet rental?

I paid 1000 deposit to hold an apartment, in a desirable area of CA for two weeks. I want to sign lease now and they keep saying that I can but th...

Does security deposit guarantee landlord must hold apartment after lease is signed?

If the rent amount is $800, and I provide the landlord with the $500 security deposit he requested, after we sign a lease, does that guarantee they mu...

What do I tell the dealer if I want a guarantee that the car I put a deposit on won't be sold?

I am putting a deposit of $5000 on a used mercedes, but I cannot fully pay it for maybe another 3 months. So, what exactly do I tell the dealer if I w...

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Deposit Rates

 

Deposit Rates Knowledge Base

What rate is directly tied to bank deposit rates?

I know rates are very low right now with all banks. What is directly tied to rates. so what rates need to increase for banks to pay more on deposits?...

want to know relation between monetary policy and bank deposit and lending rates?

want to know relation between monetary policy and bank deposit and lending rates. Can the expected monetary policy be used as a indicator of how the s...

Can one negotiate deposit interest rates with banks?

CD rates and saving rates are very low. Is it possible to negotiate a better rate with the bank if you are depositing a significant amount of cash?

What factors affect time deposit interest rates?

I am currently considering time deposits as a savings account and am wondering why the interest rates these days are so much higher than a few years a...

Will Certificate of Deposit rates rise or fall during the coming year?

Trying to decide whether to buy multiple CD's in a laddered plan, or a single Cd to lock in the current rate of return.

Relationship between housing interest rates vs terms deposit rates?

Dear Aussie, if the govt has decided to reduce the interest rates on housing loans in australia next month, do you think that interest rates on terms ...

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Savings Accounts

 

Savings Accounts Knowledge Base

savings accounts?

I wanna start saving money to buy a car and would like to know if it would be a good idea to start putting money into my savings account so the money ...

What is one of the best money market checking/savings accounts with the highest interest yield?

I currently bank of Bank of America. I am disappointed in their low interest rates and am thinking of switching to a brokerage or mutual fund firm tha...

Is it more important to have 3 different retirement savings accounts?

My husband has been stashing money into 3 different retirement savings accounts through his work. I just found out about it after 3 years he's been on...

How can i make money selling checking and savings accounts?

Does anyone know how i could make money independently promoting banking products like checking accounts, savings accounts, IRA's and CD's. I'm just l...

How do I find assets (IRAs, savings accounts) across the country ?

My boyfriend was in the military for 5 years, and created a few IRAs, savings accounts, and other assets along the way. Unfortunately, he never kept t...

How will the Fed's rate cut affect high yield savings accounts?

Today, Ben Bernanke announced that the Fed will cut a key interest rate. What effect, if any, will this have on high yield online savings accounts (li...

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Deposit Bonds

 

Deposit Bonds Knowledge Base

Can I deposit patriot bonds in my bank?

I received a patriot bond from my employer. I'm wondering if I can deposit it to my checking account.

How many mathematics professors invested in stocks and bonds and certificates of deposit?

Most mathematics professors love to invest their hard earned money. A recent survey of 150 math professors revealed that 111 invested in stocks; ...

how much money is invested in bonds and how much is invested in certificates of deposit?

Susan purchased municipal bonds which yield 7% annually and certificates of deposit which yield 9% annually. If Susan's initial investments amount to ...

how much money is invested in bonds and how much money is invested in certificates of deposit?

Susan purchased municipal bonds yielding 10% annually and certificates of deposit yielding 13% annually. If Susan's investments amounted to $12,868 an...

Should I just deposit my savings bonds?

I have savings bonds that are about 20 years old, a $100 and a $50. They aren't worth much more than that now, but I'm really broke and could use the ...

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