Transaction involving the transfer of funds from one party to another for a particular purpose (safe-keeping, investment, or to secure an contract or lease).

There are two main types of deposits. One reflecting funds deposited to another - for example a deposit into a bank or hedge fund account.

And two, a deposit to secure a contract - for example a deposit to secure a mortgage. Such deposits serve as an act of good faith, ensuring that full payment will be delivered upon later.