Bank Deposit

Definition - What does Bank Deposit mean?

A bank deposit is an amount of money that a person gives to a bank to hold for him or her. In the context of the law, banks are legally liable for these deposits, and must return them to the person who made the deposit upon request. Sometimes, banks charge fees for the service of holding money on behalf of people who use the bank.

Justipedia explains Bank Deposit

Banks take deposits so that they can use the money to do things like create loans for people who need to borrow money. The bank can then make on the interest that is repaid with the loans. However, a bank must always be able to repay its customers for their bank deposits upon demand. Otherwise, the bank could become insolvent and could face bankruptcy, and/or other legal consequences. Many people use ATM machines to withdraw portions of their bank deposits when they need money.

Connect with us

Justipedia on Linkedin
Justipedia on Linkedin
"Justipedia" on Twitter

Sign up for Justipedia's Free Newsletter!