bank deposit

Bank Deposit

An amount of money held at a financial institution on behalf of an account holder for safekeeping. For example, one may keep a bank deposit in one's checking account to pay for daily expenses instead of hiding one's money "under the mattress." Most bank deposits are insured by organizations like the FDIC to reduce their risk.

bank deposit

a sum of money held on deposit with a COMMERCIAL BANK (or SAVINGS BANK). Bank deposits are of two main types: sight deposits (CURRENT ACCOUNTS), which are withdrawable on demand; time deposits (DEPOSIT ACCOUNTS), which are withdrawable subject usually to some notice being given. Sight deposits represent instant LIQUIDITY: they are used to finance day-to-day transactions and regular payments either in the form of a CURRENCY withdrawal or a CHEQUE transfer. Time deposits are usually held for longer periods of time to meet irregular payments and as a form of savings.

Bank deposits constitute an important component of the MONEY SUPPLY. See BANK DEPOSIT CREATION, MONETARY POLICY.

bank deposit

bank deposit

bank deposit

bank deposit

Bank Deposit

bank deposit

bank deposit

Synonyms for bank deposit

noun money deposited in a bank or some similar institution

Synonyms

Related Words