A deposit is a transfer of funds from one party to another, such as a bank, for safekeeping or as collateral for a loan. Deposits can be money held in a bank account or with another financial institution, or the amount of money used as security or collateral for the delivery of goods or services. There are two main types of deposits: demand and time.

• Demand Deposit: This is essentially a checking account in which you can withdraw funds at any time.
• Time Deposit: This type of account usually requires that you hold your funds in the account for a certain amount of time or face a fee for withdrawal. Time deposit accounts tend to offer a higher rate of return than traditional savings accounts, but the money must stay in the account for a set period of time.

In addition to financial deposits, a deposit can also refer to an amount of money paid by a buyer to a seller at the beginning of a sales process in order to secure the sale. This type of deposit is often used in real estate or in letting property, or as a security deposit in vehicle rentals. Deposits are most often used when there is a valuable asset provided for use to the buyer or renter, or to secure the full payment of a product or service being provided at a later date.