What Are Bank Deposits?

Bank deposits consist of money placed into banking institutions for safekeeping🦩. These deposits are made to deposit accounts such as savings accounts, checking accounts, and money market accounts at financial institutions. The account holder has the right to withdraw deposited funds, as set forth 𓃲in the terms and conditions governing the account agreement.

How Bank Deposits Work

The 澳洲幸运5官方开奖结果体彩网:deposit itself is a liability owed by the bank to the depositor. Bank deposits refer to this liability rather than to the actual funds that have been deposited. When someone opens a bank account and 澳洲幸运5官方开奖结果体彩网:makes a cash deposit🎀, they surrender the legal title to the cash, and it becomes an asset of the bank. In turn, the account is a liability to the bank.

Types of Bank Deposits

Current (Demand Deposit) Account

A current account, also called a 澳洲幸运5官方开奖结果体彩网:demand deposit account, is a basic checking account. 澳洲幸运5官方开奖结果体彩网:Consumers deposit money, and the deposited money can be withdrawn as the account holder desires on demand. These accounts often allow the account holder to withdraw funds using bank cards, checks, or over-the-counter withdrawal slips. In some cases, banks charge monthly fees for current accounts, but they may waive the fee if the account holder meets other requirements, such as setting up direct deposit or making a c💞ertain number of monthly transfers to a savings account.

Frequently, banks will have after-hours or night depository lock boxes th🅘at allow businesses to deposit cash and check receipts outside of normal banking ไhours.

Savings Accounts

Savings accounts offer account holders interest on their deposits; however, in some cases, account holders may incur a monthly fee if they do not maintain a set balance or a certain number of deposits. Although 澳洲幸运5官方开奖结果体彩网:savings accounts are not linked to paper checks or cards like current acco𓂃unts, their funds are relatively easy for account holders to access.

In contrast, a money market account offers slightly higher interest rates than a savings account, but account holders face m꧑ore limitations on the number of checks or transfers they can make from mone✨y market accounts.

Call Deposit Accounts

Financial institutions refer to these accounts as interest-bearing checking accounts, Checking Plus, or Advantage Accounts. These accounts combine the🐈 features of checking and savings accounts, allowing consumers to easily access their money but also earn interest on their deposits.

Certificates of Deposit/Time Deposit Accounts

Like a savings account, a 澳洲幸运5官方开奖结果体彩网:time deposit account is an investment vehicle for consumers. Also known as certificates of deposit (CD), time deposit accounts tend to offer a higher rate of return than traditional savings accounts, but the money must stay in the account for a set period of time. In other countries, time deposit accounts feature alter✱native names such as term deposits, fixed-term accounts, and savings bonds.

Deposit Insurance

The Federal Deposit Insurance Corporation (FDIC) provides deposit 澳洲幸运5官方开奖结果体彩网:insurance that 澳洲幸运5官方开奖结果体彩网:guarantees the deposits of member banks for at least $250,000 per depositor, per bank. Member banks are required to place signs visible to the public stating that "deposits are backed by the full faith and credit of the United States Government." 澳洲幸运5官方开奖结果体彩网:Credit unions are insured by the National Credit Union Association (NCUA) for up to $250,000 as well.

The Bottom Line

Bank deposits a🐭re the primary means by which people store their money, mainly in savings accounts, checking accounts, and money market accounts. Bank deposits are a way to safely keep money with the ability to access it at any time in a conveniently.