Knowra Bank deposit Bank deposit A bank deposit is money entrusted to a bank and recorded as a liability owed to the depositor. It may be held in an account with terms governing access, interest, and withdrawal.
Deposit account : A bank account that records funds a customer has deposited and the bank owes. It is the account structure through which most deposits are held and accessed.
Demand deposit : A bank deposit withdrawable on demand, usually through cash, transfers, or payment instruments. It is the most accessible form of ordinary bank deposit.
Money market fund : An investment fund that holds short-term debt securities and seeks a stable share price. Its cash-like balances are investments, not bank deposits, and generally lack deposit insurance.
Deposit insurance limit : The maximum amount of eligible deposits protected per depositor, institution, and ownership category under an insurance scheme. Balances above the applicable limit may face different risks if a bank fails.
Fractional-reserve banking : A banking system in which banks keep some deposits liquid and lend or invest the rest. It explains how deposited funds support lending while banks meet withdrawals.
Savings account : A bank deposit account designed for saving, often paying interest and allowing withdrawals under stated terms. It shows how access and interest can distinguish one deposit account from another.
Certificate of deposit : A bank deposit with a fixed term and stated interest terms, often penalizing early withdrawal. It is a specific time-deposit product with a defined maturity.
Deposit flight : The movement of funds out of a bank or banking system toward perceived safer or more attractive holdings. Rapid deposit outflows can weaken a bank’s liquidity and confidence.
Bank reserve : Cash and central-bank balances held by a bank for payments and liquidity needs. Reserves help banks settle deposit withdrawals and transfers.
Time deposit : A bank deposit held for a specified term, often with a penalty for early withdrawal. Its withdrawal restrictions exchange immediate access for a defined maturity and often higher interest.
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