bank deposit

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Bank Deposit

An amount of money held at a financial institution on behalf of an account holder for safekeeping. For example, one may keep a bank deposit in one's checking account to pay for daily expenses instead of hiding one's money "under the mattress." Most bank deposits are insured by organizations like the FDIC to reduce their risk.

bank deposit

a sum of money held on deposit with a COMMERCIAL BANK (or SAVINGS BANK). Bank deposits are of two main types: sight deposits (CURRENT ACCOUNTS), which are withdrawable on demand; time deposits (DEPOSIT ACCOUNTS), which are withdrawable subject usually to some notice being given. Sight deposits represent instant LIQUIDITY: they are used to finance day-to-day transactions and regular payments either in the form of a CURRENCY withdrawal or a CHEQUE transfer. Time deposits are usually held for longer periods of time to meet irregular payments and as a form of savings.

Bank deposits constitute an important component of the MONEY SUPPLY. See BANK DEPOSIT CREATION, MONETARY POLICY.

References in periodicals archive ?
75% on all bank deposits under 100,000 euro (PS86,490) and 9.
Edwards announced in fall 2006 the bank deposit program would be made available to clients.
Edwards will feature the AGE Bank Deposit Program as the default "sweep" option for available cash in those accounts, and certain existing accounts will be eligible for conversion to the program.
Bulgaria's parliament approved Thursday the final texts of the amendments to the Value Added Tax Act, including the government's controversial proposal to levy a 10% tax on interest earned from bank deposits.
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Bulgarian finance minister has made clear his strong determination to push through parliament the proposed 10% tax on bank deposit income from next year.
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The negative outlook on the long-term ratings of FAE reflect the adverse operating environment for financial institutions in Uruguay, which has been characterized by an ongoing economic recession and the severe and continuing outflow of banking system deposits triggered by Argentina's bank deposit restrictions and devaluation.
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Economists and the central bank opposed the decision to introduce a 10% tax on bank deposit income, saying this would dent people's savings and shake the bank system foundations due to capital outflow.
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