A deposit is money held in a bank account or with another financial institution that requires a transfer from one party to another. A deposit can can also be the amount of money used as security or collateral for delivery of goods or services. Key Takeaways A deposit generally refers to money held in a
What Is a Deposit Broker? A deposit broker is an individual or firm that facilitates the placement of investors’ deposits with insured depository institutions. Deposit brokers offer investors an assortment of fixed-term investment products, many of which yield low-risk returns. An individual or firm may still be considered a deposit broker even if they do
What Is the Deposit Multiplier? The deposit multiplier is the maximum amount of money that a bank can create for each unit of money it holds in reserves. The deposit multiplier involves the percentage of the amount on deposit at the bank that can be loaned. That percentage normally is determined by the reserve requirement
What Is a Depositary Receipt (DR)? A depositary receipt (DR) is a negotiable certificate issued by a bank representing shares in a foreign company traded on a local stock exchange. The depositary receipt gives investors the opportunity to hold shares in the equity of foreign countries and gives them an alternative to trading on an
What Is the Deposit Insurance Fund? The Deposit Insurance Fund (DIF) is a private insurance provider devoted to ensuring the deposits of individuals covered by the Federal Deposit Insurance Corporation (FDIC). The money in the Deposit Insurance Fund (DIF) is set aside to pay back the money lost due to the failure of a financial institution. The
What Is a Deposit Interest Rate? The deposit interest rate is paid by financial institutions to deposit account holders. Deposit accounts include certificates of deposit (CD), savings accounts, and self-directed deposit retirement accounts. It is similar to a “depo rate,” which can refer to interest paid on the interbank market. Key Takeaways The deposit interest
What Is a Deposition? In law, a deposition is an integral part of the discovery process. It is testimony made under oath and taken down in writing by an authorized officer of the court, typically in an out-of-court setting and before trial. Key Takeaways A deposition is testimony made under oath and taken down in
What Is the Depository Institutions Deregulation Committee (DIDC)? The Depository Institutions Deregulation Committee (DIDC) was a six-member committee established by the Depository Institutions and Monetary Control Act of 1980. One goal of the act was phase out interest rate ceilings on deposit accounts, otherwise known as Regulation Q. Key Takeaways: The Depository Institutions Deregulation Committee
What Is a Depository Transfer Check? A depository transfer check (DTC) is used by a designated collection bank to deposit the daily receipts of a corporation from multiple locations. Depository transfer checks are a way to ensure better cash management for companies, which collect cash at multiple locations. Data is transferred by a third-party information service
What Is a Deposit Slip? A deposit slip is a small paper form that a bank customer includes when depositing funds into a bank account. A deposit slip, by definition, contains the date, the name of the depositor, the depositor’s account number, and the amounts being deposited. Key Takeaways A deposit slip is a small
