What is a 'Minimum Deposit'

A minimum deposit is the minimum amount of money required to open an account with a broker, financial advisor or bank. It is sometimes called an initial deposit or, in the case of bank accounts, minimum balance.

BREAKING DOWN 'Minimum Deposit'

Minimum deposit amounts range from $0 to $10,000 or more in the U.S. and cover the baseline costs associated with setting up a new account and maintaining it thereafter.

Most of the bigger brokers will offer retail investors investment accounts that can be started with a modest minimum deposit. Some brokerage firms even offer accounts with no minimum deposit, so that investors can try out their trading platforms and research tools without having to fund their accounts.

Many robo advisors, which provide financial advice or investment management online with moderate to minimal human intervention, now have lower limits on deposits. Betterment has no account minimum at all.

Besides minimum deposits, there are many other factors to consider when picking a broker or investment manager, not least being brokerage fees and management fees.

RELATED TERMS
  1. Minimum Balance

    The minimum balance is the minimum amount that a customer must ...
  2. Account Minimum

    Account minimum is the minimum balance required to maintain an ...
  3. Bank Deposits

    Bank deposits are money placed into a deposit accounts at a banking ...
  4. Minimum Margin

    Minimum margin is the initial amount required to be deposited ...
  5. Deposit

    1. A transaction involving a transfer of funds to another party ...
  6. Deposit In Transit

    A deposit in transit is money that has been received by a company ...
Related Articles
  1. Personal Finance

    Best Checking Accounts For College Students

    Student checking accounts avoid the high fees and minimum balances of some other accounts. Here's how to evaluate offers and find one with the best terms.
  2. Personal Finance

    Minimum Wage: Good Cause Or Economic Pariah?

    Here are some positives and negatives to help you decide where you stand on the minimum wage debate.
  3. Trading

    The Top 10 Forex Brokers for Beginners

    These ten forex brokers welcome new traders with user friendly educational tools and resources.
  4. Investing

    Best 2016 IRA Promotions (ETFC, BAC)

    Here are some of the best IRA promotions of 2016, with significant bonuses for large deposits.
  5. Tech

    6 Robo-Advisors That Require Little to Start

    There are many well-regarded robo-advisor options that come with minimum investment amounts. Here are snapshots of a handful of them.
  6. Insights

    What Are the Pros and Cons of Raising the Minimum Wage?

    With the debate on wages continuing in Congress and in the public arena, here are some of the major pros and cons of raising the minimum wage.
  7. Investing

    7 Countries Raising The Minimum Wage

    Beijing city recently increased minimum wages by 21%, find out what other areas of the world are paying more.
  8. IPF - Banking

    Get the Best Savings Interest Rates For You

    How do you choose between market deposit accounts, CDs and traditional savings accounts?
  9. Personal Finance

    Can A Family Survive On The U.S. Minimum Wage? (WMT, COST)

    As the political debate roars on, the numbers are clear: Even two full-timers at U.S. minimum wage can't keep a family of four above the poverty line.
RELATED FAQS
  1. How liquid are money market accounts?

    Understand the characteristics that distinguish money market accounts from checking, savings account and money market funds ... Read Answer >>
  2. How is the minimum payment on a credit card calculated?

    Even when minimum payments are low, consumers should still aim to pay off credit card balances every month. Read Answer >>
  3. What determines the interest rate on 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 >>
Trading Center