A deposit can be understood as a security measure in two ways:

  • As the money kept in a financial institution.
  • As the action of placing money in a bank account.


  • Sight deposit (also known as current account or checking account): It can be withdrawn at any moment and without previous notice. It is a non-interest-bearing bank deposit; its main purpose is providing security and convenience.
  • Time deposit (also known as certificate of deposit or a bond): This kind of deposit is of a special nature because the money has to stay in the bank for a specific period of time, otherwise a penalty may apply. At the end of the term the money can be withdrawn, however, the longer of the investment period (the time in which the money remains at the bank), the higher of the interest rate to be gained.