Cash Deposit
A cash deposit refers to money that is physically deposited into a bank account, either in the form of coins, banknotes, or electronic transfers. Cash deposits are credited to the account and increase the available balance, which can be used for withdrawals, payments, or investments. Deposits can be made into various types of accounts, such as checking, savings, or investment accounts. For businesses, cash deposits help maintain liquidity and ensure funds are available to cover expenses.
Example
An individual deposits $500 in cash at their local bank branch, which is then credited to their checking account and available for future transactions.
Key points
• A cash deposit involves adding money to a bank account, either physically or electronically.
• Deposits increase the account balance and provide liquidity for future use.
• Businesses and individuals use deposits to manage cash flow and maintain operational funds.
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