What is a bank deposit?
A bank deposit is money placed with a bank that the depositor can reclaim under the account terms. Demand and term deposits differ in access and return.
Account types
1. Demand deposits These support payments and everyday withdrawals, subject to bank processing and fees. 2. Term deposits The deposit runs for an agreed term. Early withdrawal can reduce or cancel interest under the contract. 3. Interest calculation Term, compounding, taxes and charges affect the amount received; an annual rate is not a one-month return. 4. Inflation A higher nominal balance can still buy less if prices rise faster. Compare like periods to assess real returns.
Returns and risks
5. Protection Deposit-insurance coverage, limits and exclusions depend on the jurisdiction and current rules. An investment fund is not a deposit. 6. Currency risk The local-currency value of a foreign-currency deposit moves with the exchange rate, independently of interest. 7. Opening checklist Check whether rates are gross or net, automatic renewal, early withdrawal, fees and current insurance rules. Currency mismatch adds exchange risk.