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A deposit is a sum of money that is deposited with some entity. The deposit is a credit for the party (person or organization) that placed it and can be returned (withdrawn), transferred to the other party or used for purchase later.

This financial concept is often used for banks, where deposits are usually the main source of funding.

Types of deposits:

Transactional account (checking account or current account, by country), the depositor has the right to use the money at any time, sometimes short terms are agreed upon; also called call deposit or sight deposit.

• Term deposit (or fixed-term deposit) is a fixed time and a fixed interest rate.
• Fixed deposit in India.
• Certificate of deposit in the USA and Canada.

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