Banking Deposits Cryptocurrency

A deposit account is a savings account, checking account or any other type of bank account that allows money to be deposited and withdrawn by the account holder. These transactions are recorded on the bank's books, and the resulting balance is recorded as a liability for the bank and represents the amount owed by the bank to the customer.  Some banks may charge a fee for this service, while others may pay the customer interest on the funds deposited.

In theory banking deposits can work with cryptocurrencies in a similar fashion to dollars.  Obviously, you would just need to find the proper bank that accepts cryptocurrency deposits.

In banking, the verbs "deposit" and "withdrawal" mean a customer paying money into, and taking money out of, an account. From a legal and financial accounting standpoint, the noun "deposit" is used by the banking industry in financial statements to describe the liability owed by the bank to its depositor, and not the funds that the bank holds as a result of the deposit, which are shown as assets of the bank. Subject to restrictions imposed by the terms and conditions of the account, the account holder (customer) retains the right to have the deposited money repaid on demand. The terms and conditions may specify the methods by which a customer may move money into or out of the account.

 

Their are several different types of deposit accounts:

To reduce the risk to depositors of a bank failure, some bank deposits may also be secured by a deposit insurance, or be protected by a government guarantee.  Check with your bank if you have questions regarding possible insurance or lack of insurance.

 

Learn about fractional reserve banking.

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