Search Investopedia

Deposit

Filed Under » ,
Dictionary Says

Definition of 'Deposit'

1. A transaction involving a transfer of funds to another party for safekeeping.

2. A portion of funds that is used as security or collateral for the delivery of a good.
Investopedia Says

Investopedia explains 'Deposit'

1. This type of deposit is identical to the money an investor transfers into a bank's savings or checking accounts.

2. Some contracts require a percentage of funds to be transferred before delivery as an act of good faith. An example is the initial margin deposit required for entering into a new futures contract.

Related Definitions

  •

    Forward Contract

    A cash market transaction in which delivery of the commodity is deferred until after the contract has been made. Although the delivery is made in the future, the price is determined on ...
    Read More »

  • Futures Contract

    A contractual agreement, generally made on the trading floor of a futures exchange, to buy or sell a particular commodity or financial instrument at a pre-determined price in the future. ...
    Read More »

  • Core Deposits

    The deposits made in a bank's natural demographic market. Banks count on core deposits as a stable source of funds for their lending base. Core deposits offer many advantages to banks, ...
    Read More »

    • Margin

      1. Borrowed money that is used to purchase securities. This practice is referred to as "buying on margin". 2. The amount of equity contributed by a customer as a percentage of the ...
      Read More »

    • Savings Account

      A deposit account held at a bank or other financial institution that provides principal security and a modest interest rate. Depending on the specific type of savings account, the ...
      Read More »

    • 3-6-3 Rule

      Slang used to refer to an "unofficial rule" under which the banking industry once operated, which alludes to it being noncompetitive and simplistic.The 3-6-3 rule describes how bankers ...
      Read More »

    • Down Payment

      A type of payment made in cash during the onset of the purchase of an expensive good/service. The payment typically represents only a percentage of the full purchase price; in some cases ...
      Read More »

    • Layaway

      A purchasing method that allows a consumer to put a product on hold by placing a deposit on the item. Layaway allows the customer to make smaller payments on the product until the ...
      Read More »

    • Security Deposit

      A monetary deposit given to a lender, seller or landlord as proof of intent. Security deposits can be either refundable or nonrefundable, depending on the terms of the transaction. As ...
      Read More »

    • SEC Form S-4EF

      An SEC filing that is required when forming a savings bank, savings and loan or similar financial institution that issues securities as a result of the investment of its customers' ...
      Read More »

    • Depository

      On the simplest level, depository is used to refer to any place where something is deposited for storage or security purposes. More specifically, it can refer to a company, bank or an ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions