how a deposit works
a deposit is essentially your money that you transfer to another party such as when you move funds into a checking account at a bank or credit union in the case of depositing money into a bank account you can withdraw the money at any time transfer it to another person s account or use it to make purchases banks might also offer the creation of separate business accounts business banking also called corporate or commercial banking is designed to meet the needs of businesses they allow for deposits and withdrawals as with personal accounts but often have different limits some business accounts will allow employees to deposit or withdraw funds banks that offer business accounts frequently have night depositories which are secured lock boxes that allow users to deposit cash and checks when the bank is closed often you must deposit a certain amount of money called the minimum deposit to open a new bank account depositing money into a checking account qualifies as a transaction deposit which means that the funds are immediately available and liquid and you can withdraw them without delays 1the other definition of deposit is when a portion of funds is used as a security or collateral for the delivery of a good some contracts require a percentage of funds paid before the delivery as an act of good faith for example brokerage firms often require traders to make an initial margin deposit to enter into a new futures contract 2