Minimum Deposit

DEFINITION of 'Minimum Deposit'

The smallest amount of money that an investor/trader must initially deposit into a new brokerage account. Minimum deposits are required to cover the baseline costs associated with setting up a new account and maintaining it thereafter.

Also referred to as "Minimum to Open an Account."


BREAKING DOWN 'Minimum Deposit'

Depending on the purpose of the account, minimum deposit amounts can range anywhere from $0 to hundreds of thousands of dollars. Most large, well-known companies will offer some form of investment account that can be started with a modest amount between $500 and $2,000 for a retail investor.

Minimum deposit levels are also found with certificates of deposit (CDs) at a banking institution, or retirement accounts such as IRAs.

RELATED TERMS
  1. Call Deposit Account

    A bank account for investment funds that offers the advantages ...
  2. Deposit Interest Rate

    The interest rate paid by financial institutions to deposit account ...
  3. Bank Deposits

    Money placed into a banking institution for safekeeping. Bank ...
  4. Minimum Margin

    The initial amount required to be deposited in a margin account ...
  5. Deposit

    1. A transaction involving a transfer of funds to another party ...
  6. Account Minimum

    The minimum balance required to be maintained in an investment ...
Related Articles
  1. Brokers

    TD Ameritrade Thinkorswim: Account Types And Minimum Deposits

    By Cory Mitchell Investors and trades can use the thinkorswim platform using a number of different TD Ameritrade account types. Individual and Joint accounts No minimum deposit, but to ...
  2. Savings

    Where To Put Your Cash: Call Deposit Vs Time Deposit Accounts

    Time deposit accounts and call deposit accounts allow customers to earn higher interest in exchange for less access to their cash.
  3. Savings

    What is a Demand Deposit?

    A demand deposit is any type of account where the money in the account may be withdrawn at any time without prior notice to the financial institution.
  4. Brokers

    E*Trade Brokerage: Account Types and Minimum Deposits

    E*Trade has a $500 minimum for opening new brokerage accounts. There is no minimum for retirement accounts. Access to better tools and commissions is a function of trading activity, not account ...
  5. Savings

    Find the Best Savings Account Rates

    You know how to spot the highest interest rate, but how do you really get the best deal on savings accounts?
  6. Savings

    Banking: Making Deposits

    By Amy FontinelleMaking deposits is a key part of having a checking account. If you don't make deposits, your checking account will eventually run out of money and you won't be able to use it ...
  7. Savings

    Explaining Term Deposits

    A term deposit (more often called a certificate of deposit or CD) is a deposit account that is made for a specific period of time.
  8. Term

    How Time Deposits Work

    A time deposit is an interest-bearing bank deposit that has a specific maturity date.
  9. Forex Education

    FXCM Capital Markets; Account Types, Minimum Deposits And Services Offered

    Account Types and Minimum DepositsThere are three types of accounts offered at FXCM: Standard accounts require a minimum deposit of $2000 (or 200,000 Yen) and caters to most traders or investors. ...
  10. Forex Education

    UFXMarkets: Account Types And Minimum Deposits

    UFXMarkets offers a variety of account types that cater to different levels of expertise. Here are the options available and what each involve. Standard Account(minimum ...
RELATED FAQS
  1. For what types of accounts are demand deposits available?

    Learn about the different types of accounts designated as demand deposit accounts, such as savings accounts and money market ... Read Answer >>
  2. What is the difference between a demand deposit and a term deposit?

    Understand the meaning of demand deposits and term deposits, and learn about the major differences between these two types ... Read Answer >>
  3. What are the Federal Reserve's guidelines on demand deposit accounts?

    Read about some of the Federal Reserve's requirements and guidelines regarding the treatment, safeguarding and processing ... Read Answer >>
  4. What proportion of my income should I put into my demand deposit account?

    Find out how much money to keep in your liquid demand deposit accounts, such as checking or savings accounts, and discover ... Read Answer >>
  5. What determines the interest rate in my money market account?

    Placing funds in a money market account may provide a higher interest rate than a savings account due to the underlying securities ... Read Answer >>
  6. Besides a savings account, where is the safest place to keep my money?

    Savings accounts are safe because investors' deposits are guaranteed by the Federal Deposit Insurance Corporation (FDIC) ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center