deposit account

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Word: Deposit Account

Part of Speech: Noun

Definition: A deposit account is a type of bank account where you can save money. With this account, you usually keep your money for a certain period (fixed term), or you might need to give the bank notice before you take your money out. If you withdraw the money too early, you may lose some interest (the money the bank pays you for keeping your money with them).

Usage Instructions

• You can use a deposit account to save money for future needs, like buying a car or paying for school.
• It is important to check the rules of your deposit account, as some accounts might require you to keep the money there for a specific time.

Example Sentence

"I opened a deposit account at the bank to save money for my vacation, but I have to keep it there for at least six months."

Advanced Usage

In finance, deposit accounts can be referred to as "time deposits" or "certificate of deposit (CD)" when they are held for a fixed term. These accounts typically offer higher interest rates compared to regular savings accounts because they require you to leave your money untouched for a certain period.

Word Variants

• Deposit (verb): To put money into a bank account.
• Account: A record of financial transactions and balances at a bank.

Different Meanings

• In a more general sense, "deposit" can mean to place or set something down, not just in banking. For example, "He deposited his suitcase at the hotel."

Synonyms

• Savings account
• Time deposit
• Fixed deposit

Idioms and Phrasal Verbs

• Put down a deposit: This means to pay a small amount of money to secure something, like a rental property or a car.

  • Example: "I need to put down a deposit to hold the apartment until I can move in."

• Withdraw funds: This means to take money out of your account.

  • Example: "You can withdraw funds from your deposit account only after notifying the bank."

Conclusion

A deposit account is a safe place to keep your money while earning some interest.

Academic

Noun

1. a savings account in which the deposit is held for a fixed term or in which withdrawals can be made only after giving notice or with loss of interest

Synonyms

• time deposit account