What Are Bank Deposits?

Money is said to be the ultimate value equivalent on earth. It is not that important to be well versed with money and its different types since money is something that would never cease to amaze and captivate the hearts and minds of people all over the world. In fact, money is nothing but an idea or a medium through which the exchange of goods and services takes place between individuals or nations. If you have any amount of money in your bank account, then you are just like everybody else. If you do not have any money in your bank account then you are like everybody else.


Money has been used since ages for transaction purposes. This has become one of the fundamental necessities of people all around the world. Paper money has been the first mode of money in human’s history and it gradually transformed from gold into a more stable medium of exchange as compared to the traditional way of making use of precious metals such as gold, silver and copper. Although bank deposits have been very useful in terms of facilitating the smooth transfer of funds throughout the world, nowadays, most of the transactions are made through the electronic means. Electronic money or cheques are basically made up of a number of different components and bank deposits are just one of them.

In addition to bank deposits, there are other types of bank notes as well including bond notes, stock certificates, precious metal deposits, and so on. Commercial bank money is nothing but traveler’s checks that are obtained from the various branches of commercial banks. These commercial bank deposits are considered as liabilities by the central banks of the country and the money thus deposited is known as national reserves. The central banks of various countries have been known to control the level of currency by buying and selling foreign currency as per the need and situations.