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What is bank deposit

Bank deposit simply means that you or your company place money in the bank.

Bank deposit simply means that you or your company place money in the bank.

This is considered a very secure way of storing money, with a government guarantee at the bottom: In Australia, The Financial Claims Scheme (FCS) guarantees AUD 250,000 in deposits per legal entity (either a company or an individual), if something were to happen to the bank.

When individuals and companies deposit money in banks as bank deposits, this ensures that banks can lend money to their customers again.

Bank deposit = liquid assets

Cash in the form of bank deposits is just one of several ways to store value. Other methods can include stock savings, stock portfolios, investments in real estate, equipment, etc.

Bank deposits are considered the most liquid way to store value, as it is already cash that can be used and do not need to be converted into marketable assets first through, for example, the sale of real estate.