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. Brokered Deposit

    A large-denomination bank deposit that is sold by a bank to a ...
Related Articles
  1. 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.
  2. 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    A demand deposit is any type of account where the money in the account may be withdrawn at any time without prior notice to the financial institution.
  3. Trading Systems & Software

    Broker Summary: Scottrade Online Trading Platform: Account Types And Minimum Deposits

    Scottrade offers investors and traders a variety of investment and banking account types from which to choose. Most accounts can be opened online, although some require completion of physical ...
  4. 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?
  5. 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.
  6. Term

    How Time Deposits Work

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

    Forex Broker Summary: Saxo Bank - Account Types And Requirements

    Saxo Bank offers three different types of accounts, ranging from its basic classic account to its advanced premium account. The primary differences between the accounts - other than the minimum ...
  8. Investing Basics

    Start Investing With Only $1,000

    Find out what fees and restrictions need to be considered before investing $1,000.
  9. Investing Basics

    What is a Bank?

    A bank is a financial institution licensed to receive deposits or issue new securities to the public.
  10. Bonds & Fixed Income

    Certificates Of Deposit: Introduction

    Safety is a hallmark of the traditional certificate of deposit (CD) sold by a bank or credit union. Investors seeking a low-risk investment expect that many CDs, when held to maturity, will return ...
RELATED FAQS
  1. 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 >>
  2. 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 >>
  3. 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 >>
  4. 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 >>
  5. What is the minimum amount of money that I can invest in a mutual fund?

    Learn about investing in mutual funds even with a smaller initial investment; there are many funds available to investors ... Read Answer >>
  6. What is the safest investment?

    Learn about some of the safest investment types. Find out which investment categories offer the best protection on your principal ... Read Answer >>
Hot Definitions
  1. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  2. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  3. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  4. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  5. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  6. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
Trading Center