Deposito
In short
A deposit is an amount of money placed into a financial account or given as a security to guarantee an agreement.
In plain words
It is money you put into a bank to keep it safe or earn interest. It can also be a small payment made upfront to show you are serious about buying something.
A simple example
You pay a £500 deposit to a landlord before moving into a new flat. This money is held to cover any potential damages to the property.
Why it matters
Deposits help banks lend money to others and provide security for businesses. For individuals, they are the foundation of personal savings and credit building.
Easy to mix up
Do not confuse a deposit with a withdrawal, which is the act of taking money out of an account.