A deposit is an amount of money that a person or entity has in an account at a bank and that can be withdrawn at any time. When we talk about deposits, we consider them as almost money, since it is possible to convert it into cash almost immediately.
There are two types of deposits:
- Demand deposits: These are the so-called current accounts. It is possible to withdraw (and deposit) money at any time and at no cost.
- Time deposits: These are savings accounts in which a certain amount of money must be held for a certain period of time in order to obtain a higher interest rate than that of demand deposits.