Deposit account

Your cash is deposited on a bank account but is it an ordinary account or is part of a deposit account? Matter of fact is that a deposit is something that earns you a bit more than an ordinary bank account.

Managing a deposit account however means two things: 

  • Your banking arrangement must mean that you can get money out of the deposit every day for your own business use.
  • You transfer the money back each and every day. Technically your keeping two accounts – regular bank account and a deposit account.

Depositing is a fancy word. It means you got assets and funds to hold somewhere to earn more. It’s like investing, but it gives you the liquidity meaning you still have the funds for your use whenever you need them. Depositing for a longer period means that when you end up needing those funds, you’ll be asked to pay a fine when you want the money before the end of the term.

So do consider depositing whatever funds you’ve got left over for a longer period in time. If there’s a certain sum you’ve got left over for say a month, it could be that you won’t need in a longer period.