customer deposits

Customer deposits are funds that customers place with a business or financial institution, often as a form of security or payment. For example, when renting an apartment, a tenant provides a deposit to cover potential damages or unpaid rent. In banking, deposits are the money customers put into their accounts, which the bank holds and can use to lend to others. Deposits help secure commitments, ensure obligations are met, and provide a financial cushion for both the customer and the institution. Essentially, deposits are a way of safeguarding funds and establishing trust between parties.