• Bank Deposit Definition
• Bank Deposit Tickets
• Bank Deposit Stamper

A deposit account is a bank account maintained by a financial institution in which a customer can deposit and withdraw money. Deposit accounts can be savings accounts, current accounts or any of several other types of accounts explained below.

Deposit Agreement and Disclosures Effective November 6, 2020. Applies in all states. Bank of America, N.A. ©2020 Bank of America Corporation. Bank deposit definition is - any funds credited to a depositor's account by a bank. Deposit your check at a U.S. Bank branch or ATM. If there isn’t a branch or ATM near you, you can deposit your check by mailing it to us with a deposit slip. If you don’t have a deposit slip, you can simply write your account number on the check. Be sure to sign the back of your check before mailing. Learn: How To Deposit Cash to an Online Bank Account Certificates of Deposit. A certificate of deposit, or CD, is a time deposit account. When you open a CD, you select a term specifying how long you will keep the money on deposit at the bank. Money kept in the bank longer typically earns a.

Transactions on deposit accounts are recorded in a bank's books, and the resulting balance is recorded as a liability of the bank and represents an amount owed by the bank to the customer. Some banks charge fees for transactions on a customer's account. Additionally, some banks pay customers interest on their account balances.

Types of accounts[edit]

• Transactional accounts, known as 'current accounts' in Member states of the Commonwealth of Nations and 'checking accounts' in the United States

A deposit account for the purpose of securely and quickly providing frequent access to funds on demand, through various different channels. Because money is available on demand, these accounts are also referred to as 'demand accounts' or 'demand deposit accounts', except in the case of NOW (negotiable order of withdrawal) accounts, which are rare checking accounts that require a seven-day notice before withdrawals.

A deposit account that pays interest at money market rates, and for which no notice or very short notice is required for withdrawals. In the United States, they are similar to checking accounts in that they offer check-writing privileges and instant access but they are subject to the same regulations as savings accounts, including monthly transaction limits.

Accounts maintained by retail banks that pay interest but can not be used directly as money (for example, by writing a cheque or using a debit card at a point of sale), although cash can be withdrawn from these accounts at an automated teller machine. While they are not as convenient to use as checking accounts, these accounts generally offer consumers a higher rate of interest than a transactional account and will usually be linked to a transactional account.

• Time deposit, also known as a certificate of deposit in the United States

A money deposit at a banking institution that cannot be withdrawn for a preset fixed 'term' or period of time and will incur penalties for withdrawals before a certain date. When the term is over it can be withdrawn or it can be rolled over for another term. Generally speaking, the longer the term the higher the interest rate offered by the bank.

• Call deposit

A deposit account that allows for the withdrawal of funds without penalty but requires a higher minimum balance to earn interest.^[1]

A deposit account in which amounts over a certain balance are automatically transferred to another account pursuant to a pre-determined set of arrangements

• Automatic transfer service account

A deposit account that allows the transfer of funds from a savings account to a checking account in order to cover a check written or to maintain a minimum balance.

• Short term deposit account

An account where deposits are held for no longer than a year.^[2]

How banking works[edit]

In banking, the verbs 'deposit' and 'withdrawal' mean a customer paying money into, and taking money out of, an account, respectively. From a legal and financial accounting standpoint, the noun 'deposit' is used by the banking industry in financial statements to describe the liability owed by the bank to its depositor, and not the funds that the bank holds as a result of the deposit, which are shown as assets of the bank.

Subject to restrictions imposed by the terms and conditions of the account, the account holder (customer) retains the right to have the deposited money repaid on demand. The terms and conditions may specify the methods by which a customer may move money into or out of the account, e.g., by cheque, internet banking, EFTPOS or other channels.

For example, a depositor depositing $100 in cash into a checking account at a bank in the United States surrenders legal title to the $100 in cash, which becomes an asset of the bank.^{[citation needed]} On the bank's books, the bank debits its cash account for the $100 in cash, and credits a 'deposits' liability account for an equal amount. (See double-entry bookkeeping system.)

In the financial statements of the bank, the $100 in currency would be shown on the balance sheet as an asset of the bank and the deposit account would be shown as a liability owed by the bank to its customer. The bank's financial statement reflects the economic substance of the transaction, which is that the bank has borrowed $100 from its customer and has contractually obliged itself to repay the customer according to the terms of the agreement. These 'physical' reserve funds may be held as deposits at the relevant central bank and will receive interest as per monetary policy.

Typically, a bank will not hold the entire sum in reserve, but will lend most of the money to other clients, in a process known as fractional-reserve banking. This allows providers to earn interest on the asset and hence to pay interest on deposits.

By transferring the ownership of deposits from one party to another, banks can avoid using physical cash as a method of payment. Commercial bank deposits account for most of the money supply in use today. For example, if a bank in the United States makes a loan to a customer by depositing the loan proceeds in that customer's checking account, the bank typically records this event by debiting an asset account on the bank's books (called loans receivable or some similar name) and credits the deposit liability or checking account of the customer on the bank's books. From an economic standpoint, the bank has essentially created economic money (although not legal tender). The customer's checking account balance has no dollar bills in it, as a demand deposit account is simply a liability owed by the bank to its customer. In this way, commercial banks are allowed to increase the money supply (without printing currency).

Regulations[edit]

Banking operates under an intricate system of customs and conventions developed over many centuries. It is also normally subject to statutory regulations, such as reserve requirements developed to reduce the risk of failure of the bank. It may also have the purpose of reducing the extent of depositor losses in the event of bank failure.

To reduce the risk to depositors of a bank failure, some bank deposits may also be secured by a deposit insurance scheme, or be protected by a government guarantee scheme.

See also[edit]

References[edit]

1. ^Call Deposit, http://www.deposits.org, accessed 2012-05-14.
2. ^Short Term Deposit, International Deposit, Interest Rates Exchange. Accessed 2012-05-14.

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Chase QuickDeposit℠

Deposit checks with the Chase Mobile^® app.

• Overview
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Use Chase QuickDeposit℠ on the Chase Mobile^® app to deposit your checks and access your funds quickly.

Save a trip to the branch and deposit checks on your schedule, virtually anytime and anywhere.

Deposit checks securely from your mobile phone or tablet. We protect your information and never store your passwords or check deposit data and images on your mobile device.

How to get started

Watch how it works with this helpful how-to video.

Choose 'Deposit checks' in the navigation menu of your Chase Mobile^® app and choose the account. 

Enter the check amount and tap 'Front'. With our new 'Auto Capture' feature, the picture of the front and back of the endorsed check will be captured — or you can choose to take the pictures manually.

Confirm the details, submit and you're done.

Common questions answered

How does Chase QuickDeposit℠ work?

In the Chase Mobile^® app, choose “Deposit Checks” in the navigation menu and select the account. Enter the amount of the check and tap 'Front'. With our 'Auto Capture' feature, the picture of the front and back of the endorsed check will be captured — or you can choose to take the pictures manually. Verify your information and submit your deposit. After you submit, you can deposit another check or view the receipt. You’ll get an email when your deposit is received — and another when it’s accepted. If the deposit is rejected, you’ll also get an emailed explanation. Remember to properly endorse the back of the check with your signature and 'For electronic deposit only at Chase.'

When will my funds be available?

Deposits submitted before 11 PM Eastern time on a business day generally will be available by the next business day. Deposits submitted after 11 PM or on a non-business day will be processed the next business day. However, we may delay availability if we require further review of the deposit. Any information about delayed availability will be provided in the Secure Message Center, which is accessible in the main navigation menu.

What should I do with my check(s) after I’ve deposited it?

After you complete your transaction, write “deposited” and the date of deposit on the face of the check. Please retain the marked check for two business days or until you receive our notification that your QuickDeposit has been accepted. After that time, you may destroy it.

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Bank Deposit Definition

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