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The deposit is a credit for the party (individual or organization) who placed it, and it may be taken back (withdrawn) in accordance with the terms agreed at time of deposit, transferred to some other party, or used for a purchase at a later date.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.
A demand deposit is a deposit that can be withdrawn or otherwise debited on short notice. Transaction accounts (known as "checking" or "current" accounts depending on the country) can be used to pay other parties, while savings accounts are typically payable only to the depositor or another bank account, and may have limits on the frequency of withdrawal.
Time deposit
Deposits which are kept for any specific time period are called time deposit or often as term deposit.
Term deposit (or time deposit), bear a fixed time and fixed interest rate[1]
Overnight lending occurs usually from noon to noon, using a special rate to give as security or in part payment.
Special deposit
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. This the foundation of fractional-reserve banking, since the bank can lend out the money that it owns while owing an obligation to the depositor. 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. Items placed in a safe deposit box are examples of special deposits.
^[1], Deposit your trust in Fixed Deposits, siliconindia.com
February 20, 2023
deposit, finance, this, article, relies, largely, entirely, single, source, relevant, discussion, found, talk, page, please, help, improve, this, article, introducing, citations, additional, sources, find, sources, deposit, finance, news, newspapers, books, sc. This article relies largely or entirely on a single source Relevant discussion may be found on the talk page Please help improve this article by introducing citations to additional sources Find sources Deposit finance news newspapers books scholar JSTOR October 2017 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such as a bank The deposit is a credit for the party individual or organization who placed it and it may be taken back withdrawn in accordance with the terms agreed at time of deposit transferred to some other party or used for a purchase at a later date Deposits are usually the main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 Contents 1 Types 1 1 Demand deposit 1 2 Time deposit 1 3 Special deposit 2 See also 3 ReferencesTypes EditDemand deposit Edit A demand deposit is a deposit that can be withdrawn or otherwise debited on short notice Transaction accounts known as checking or current accounts depending on the country can be used to pay other parties while savings accounts are typically payable only to the depositor or another bank account and may have limits on the frequency of withdrawal Time deposit Edit Deposits which are kept for any specific time period are called time deposit or often as term deposit Term deposit or time deposit bear a fixed time and fixed interest rate 1 Fixed deposit in India 2 Certificate of deposit in the U S and Canada Overnight lending occurs usually from noon to noon using a special rate to give as security or in part payment Special deposit Edit 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 This the foundation of fractional reserve banking since the bank can lend out the money that it owns while owing an obligation to the depositor 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 Items placed in a safe deposit box are examples of special deposits See also EditDeposit slip Passbook Deposit account Security depositReferences Edit term deposit Investopedia accessed 2012 05 14 1 Deposit your trust in Fixed Deposits siliconindia com Retrieved from https en wikipedia org w index php title Deposit finance amp oldid 1092098984, wikipedia, wiki, book, books, library,
