Deposit — in plain language
money or property given to someone else to hold for safekeeping, as a guarantee for a future obligation, or as part of a payment
From a fixed, curated glossary of 7,257 legal terms. Not legal advice. How it's made: plainlanguage.us/trust
Plain language
money or property given to someone else to hold for safekeeping, as a guarantee for a future obligation, or as part of a payment
- money held for safekeeping
- security payment
- upfront payment
- pledged asset
What to watch for
- Non-lawyers often confuse a 'deposit' (which may be refundable) with a 'down payment' (which is usually a non-refundable portion of the total price). Always clarify if the money is intended to be returned.
- In banking, a 'deposit' is a liability of the bank to the customer, not the customer's property sitting in a vault. Translators should avoid implying the bank is merely a storage locker.
- The term is used both as a noun (the money itself) and a verb (the act of placing the money). Ensure the translation reflects whether the document refers to the object or the action.
Distinguishing from Similar Terms.
- Deposit vs. Escrow: A deposit is often held directly by the person you are doing business with (like a landlord). Escrow is when a neutral third party holds the money or property until specific conditions are met.
- Deposit vs. Collateral: A deposit is usually cash or a specific item held to ensure performance. Collateral is a broader term for any asset (like a house or car) that you pledge to a lender to secure a loan.
What to Watch For.
- Refundability: Always check the contract to see if the deposit is "refundable," "non-refundable," or "applied to the purchase price." Using the word "deposit" alone does not tell the reader if they will get their money back.
- Bank Accounts: When a contract mentions a "deposit account," it is simply referring to a bank account. Do not over-translate this as a complex legal arrangement; it is just a place where money is kept.
Legal definition
A deposit is money or property that you give to another person or company to hold. Depending on the situation, this might be for safekeeping, to prove you are serious about a deal, or to act as a safety net in case you fail to meet your obligations (like paying rent or covering damages).
Meanings by context
everyday English: Putting something in a specific place.
security deposit: Money you pay upfront that the other person keeps to cover potential costs, like property damage or unpaid bills.
deposit account: A standard bank account where you keep your money.
Examples
Legal: The tenant shall provide a two (2) month security deposit with Landlord.
Plain: The tenant must pay the landlord an amount equal to two months of rent to be held as a safety deposit.
Legal: Cash Collateralize means to pledge and deposit with or deliver to the Lender.
Plain: To 'cash collateralize' means to hand over cash to the lender to hold as a guarantee for a loan.
Legal: Participant to deposit all written or electronic certificates (if any) with the agent.
Plain: The participant must hand over all paper or digital certificates to the agent for safekeeping.
Where you'll see it
- lease agreements
- loan agreements
- bank account contracts
- real estate purchase contracts
Related terms
- escrow
- collateral
- bailment
- security deposit
- earnest money
Word details
- Pronunciation
- deh-PAH-zit
- Part of speech
- noun
- Origin
- Latin — from 'depositum' — something placed or entrusted
- Domains
- contract law, banking law, real property, commercial law
- Frequency
- very common
- Formality
- moderate
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