The human tendency to preserve and increase accumulated savings has been known since time immemorial. The development of credit and financial relations has led to the emergence of banks and other institutions where money can be given at interest and a good profit can be made. The main forms of investments are deposits and deposits, which are very often used synonymously. Understanding the difference between them will help you manage your resources more competently and invest your own funds profitably.
Definition
Deposit - these are monetary funds, as well as other values (shares, jewelry, etc.) transferred to the bank by an individual or legal entity under the condition of subsequent remuneration or for storage. The terms of use are stipulated by the relevant agreement, which is concluded between the institution and the investor. The owner of the account can dispose of the proceeds at his own discretion.
Contribution - funds that are contributed by a person to participate in management and profit, at interest or in custody. There are many forms of investment: both repayable and non-repayable. In colloquial speech, a contribution is also called the amount of resources (material, labor, mental) that a person has invested in the implementation of a common cause.
Comparison
Both words are close in meaning, denoting those funds and resources that are transferred to financial institutions and other institutions. However, in practice there have been significant discrepancies in these definitions. Firstly, the category “deposit” is almost completely included in the scope of the concept “deposit”. A deposit account can only be opened with a bank that is registered in accordance with the established procedure and conducts its activities legally.
The deposit can be transferred to both a financial institution and non-banking organizations. It is the money transferred for the establishment of a commercial enterprise. In addition, the deposit can be made in various forms: money, securities and other assets, jewelry. The deposit is always transferred in hard currency, which is one of its most important differences.
The deposit can bring profit to its owner (interest for the use of funds) or do without it (depository). If the contribution is made to a commercial enterprise, then the remuneration goes to the depositor without fail. A deposit is a temporary use of funds that must end sooner or later. The contribution can be made up to the moment of demand (statutory fund of the enterprise) or transferred on a gratuitous basis (charitable event).
Conclusions TheDifference.ru
- The scope of concepts. The meaning of the term “deposit” is broader, but it does not completely absorb the category “deposit”.
- Form. The deposit always comes in the form of money, while the deposit can also be made by assets, securities, jewelry, etc.
- Purposes of use. The main purpose of the deposit is the profitable use of money, that is, their investment in business, or storage. The contribution can also be charitable, which does not imply commercial use.
- Returnability. The deposit is made on the basis of receiving remuneration at a certain point in time. The contribution can be transferred without previously agreed conditions of return.
- Profit. If we are talking about commercial deposits that imply return, then a prerequisite will be making a profit. The deposit can be made without such a condition (depository).
