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deposit

dih-PAH-zit /dɪˈpɒzɪt/

nounverbB1IELTSTOEFL

neutralfinancial

A sum of money paid in advance as security for a rental or purchase, or the act of putting money into an account.

Implies a temporary payment that is held as a guarantee and is refundable under specific conditions.

The story behind the word. From Latin 'depositum', neuter past participle of 'deponere' (to lay down, put aside), from 'de-' (down) + 'ponere' (to put). It literally means 'something put down' for safekeeping.

Word relationships

down payment: A down payment is a non-refundable first installment on a purchase, while a deposit is often held as security and can be returned.
retainer: A retainer is a fee paid to secure professional services (like a lawyer), whereas a deposit is tied to physical property or accounts.

withdrawal: The act of taking money out of an account, which is the opposite of depositing it.

Commonly confused with

payment: A payment is money given in exchange for goods or services, while a deposit is often a security measure or advance portion.

Word family

depositor (noun): A person who keeps money in a bank.
deposition (noun): The action of deposing someone, or a legal statement.

Collocations

security deposit
pay a deposit
refundable deposit
direct deposit

Example sentences

"The landlord required a security deposit equal to one month's rent before handing over the keys." Rental agreement
"She went to the bank to deposit her paycheck into her savings account." Banking

Memory hook

You 'deposit' money to 'put it down' in a safe place. Put down a deposit to secure your spot.

When not to use

Do not use for non-refundable fees or outright purchases.

Fun facts

In geology, a 'deposit' refers to natural accumulations of minerals or sediment laid down by water or wind over millions of years.