Business Glossary

1. cash, checks, or drafts placed with a financial institution for credit to a customer's account. Banks broadly differentiate between demand deposits (checking accounts on which the customer may draw at any time) and time deposits, which usually pay interest and have a specified maturity or require 30 days' notice before withdrawal.
2. securities placed with a bank or other institution or with a person for a particular purpose.
3. sums lodged with utilities, landlords, and service companies as security.
4. money put down as evidence of an intention to complete a contract and to protect the other party in the event that the contract is not completed.

1. funds placed with a bank in a savings account, or in a demand account subject to withdrawal by check. A deposit balance in a deposit accepting bank-a depository financial institution-is merely a credit, representing the depositor's right to an equivalent amount of money from the bank. The opposite is a withdrawal , removing funds from an account.
2. crediting of cash, checks, or drafts to a customer's account at a depository financial institution.
3. earnest money given as intention of fulfilling a contract, for example, a down payment towards purchase of a house.

1. cash, checks, or drafts placed with a financial institution for credit to a customer's account.
2. securities placed with a bank or other institution or with a person for a particular purpose.
3. sums lodged with utilities, landlords, and service companies as security.
4. money put down as evidence of an intention to complete a contract and to protect the other party in the event that the contract is not completed.
5. natural resources, such as a mineral deposit.

money paid in good faith to assure performance of a contract. Deposits are commonly used with sales contract and leases , If the person who put up the deposit fails to perform, the deposit is forfeited, unless conditions in the contract allow a refund. brokers are to put deposits in a separate checking account pending completion of the contract.

Example: Whitman presented a $1,000 check as an earnest money deposit on a home she would buy provided she could get a 7% interest rate, 30-year loan for 80% of the price. The broker deposited the check in an escrow account , and refunded it when Whitman could not arrange said loan.