Definition of Bank Deposit

In the field of economy and the finance, the concept of bank deposit is perhaps one of the most common and used, not only so much by specialists if not also by ordinary people who do not necessarily have anything to do with those areas. Bank deposit is now very common and banks urge their customers (or also to potential future clients) to realize them through many facilities and benefits for the individual wave institution decide to do it. Like all capitalist entities and financial, the Bank It also obtains economic benefits from the use of its systems and institution for the payment of services, payment of debts and others through the bank deposit.

In practical terms, the concept of bank deposit is very simple to understand. Its very name explains it: the bank deposit is the act by which a person, an institution, a company deposit silver, stocks, bonds in a bank's system. Thus, the bank receives that money and redirects it to whoever corresponds. In the middle of the operation, the bank charges various types of interest for allowing the

transmitter use his system.

While in times past this act of making a bank deposit was much more practical and even literal (one really gave money to someone and that person received and gave that same money), with the complexity of societies and of the banking and financial systems, the deposit that one makes can be considered virtual since it is very difficult for the same silver is delivered to the sender if not that the bank, from the use of its reserves, redirects particular amounts of money to each case.

Bank deposits can also be made not to be delivered to a third party but so that that money is safeguarded by the bank, responsible for taking care of it and delivering it to the owner when he is so decide. Clearly, in this case also the banks will charge an interest but they also usually grant benefits depending on each case, on the amount of silver, on the estimated time that this deposit will be kept in the bank, etc. Bank deposits can be free (known as sight deposits) or time deposits. While the former allow the client use your money at ease and without restrictions, the second establish restrictions (for example, that the client will not be able to use that money for three months) but pay much more interest, for which a person increases their deposited wealth because in this way it allows the bank to use that money to carry out other operations freely.

Topics in Bank Deposit