Financial sector

In common usage, deposit refers to the safekeeping of a certain amount of money in a financial institution. The financial and economic sector defines deposit as a fixed amount against interest. When filing the first deposit, the corresponding framework conditions are recorded in writing. These relate to the general terms and conditions of the bank or the bank as well as the relevant interest rate.

Sight and term deposits

In finance, there are two different types of deposits: demand deposits and time deposits. Banks use these two types of deposits to lend.

Sight deposits are the kind of deposits used in checking accounts. These consist of an indefinite amount of money. The deposit can be used by the customer at any time completely or only partially dissolved again. As a rule, no interest rates are allocated for this type of deposit.

By contrast, in the case of a time deposit, the depositor undertakes to deposit the specified amount for a specified period (at least one month) with the financial institution. The bank honors this with an interest rate charged to the account. If the customer withdraws the money from his account earlier than agreed upon, the bank will not pay the accrued interest. This type of deposit is also known as term deposit.

Payment industry

In the payment industry, deposit is the security deposit on the amount cleared. Usually, for a credit card payment, a sum of 5-15% is withheld over a period of six months. The withholding represents a certain security, for example in the event of a chargeback.


In connection with the term deposit, deposit banking or the deposit bank is also used. A deposit bank is a financial institution specializing in the provision of deposits.

Debit cards

Debit cards

Debit cards are an integral part of daily payment transactions. Find all important information about them here.