Deposit vs. Withdrawal: Know the Difference
By Shumaila Saeed || Updated on December 25, 2023
A deposit is adding funds to an account, while a withdrawal is taking funds out.
Key Differences
A deposit involves adding money or assets to a bank account, increasing the account balance. In contrast, a withdrawal refers to the act of removing money or assets from an account, which decreases the balance.
Shumaila Saeed
Dec 07, 2023
Deposits are often made to save funds or earn interest, contributing to financial growth or stability. Withdrawals, on the other hand, are conducted to utilize the saved funds, often for purchases, payments, or emergencies.
Shumaila Saeed
Dec 07, 2023
When making a deposit, one usually receives a deposit slip as confirmation, while a withdrawal often requires authentication, such as a PIN or signature.
Shumaila Saeed
Dec 07, 2023
Deposits can be made through various methods like direct transfer, cash, or check. Withdrawals, in contrast, can be done via ATMs, checks, or electronic transfers.
Shumaila Saeed
Dec 07, 2023
Deposits often contribute to the credit side of an account ledger, reflecting an increase in funds. Withdrawals, conversely, are recorded on the debit side, indicating a reduction in the account balance.
Shumaila Saeed
Dec 07, 2023
ADVERTISEMENT
Comparison Chart
Purpose
To add funds or assets to an account
To remove funds or assets from an account
Shumaila Saeed
Dec 07, 2023
Typical Methods
Cash, checks, direct transfers
ATMs, checks, electronic transfers
Shumaila Saeed
Dec 07, 2023
Documentation Required
Deposit slips, transaction confirmation
Withdrawal slips, authentication
Shumaila Saeed
Dec 07, 2023
ADVERTISEMENT
Deposit and Withdrawal Definitions
Deposit
To place for safekeeping or in trust.
He deposited the documents in the safe.
Shumaila Saeed
Dec 07, 2023
Withdrawal
A method of removing funds.
My withdrawal at the ATM was quick and easy.
Shumaila Saeed
Dec 07, 2023
Withdrawal
Taking money out of a financial account.
She made a withdrawal of $200 from her checking account.
Shumaila Saeed
Dec 07, 2023
Deposit
To lay down or leave behind by a natural process
Layers of sediment that were deposited on the ocean floor.
Glaciers that deposited their debris as they melted.
Shumaila Saeed
Oct 19, 2023
ADVERTISEMENT
Withdrawal
Discontinuing involvement in an activity.
His withdrawal from the race surprised everyone.
Shumaila Saeed
Dec 07, 2023
Withdrawal
Stopping the use of a substance.
He experienced withdrawal symptoms after quitting smoking.
Shumaila Saeed
Dec 07, 2023
Withdrawal
A retreat or retirement
The dinner guests' withdrawal to the den.
Shumaila Saeed
Oct 19, 2023
Withdrawal
The removal of people from a place, as in the removal of troops from a military position.
Shumaila Saeed
Oct 19, 2023
Deposit
Something, such as money, that is entrusted for safekeeping, as in a bank.
Shumaila Saeed
Oct 19, 2023
Withdrawal
A removal of something that has been deposited, as in an account.
Shumaila Saeed
Oct 19, 2023
Withdrawal
Discontinuance of the use of a drug or other substance, especially one that is addictive.
Shumaila Saeed
Oct 19, 2023
Deposit
A partial or initial payment of a cost or debt
Left a $100 deposit toward the purchase of a stereo system.
Shumaila Saeed
Oct 19, 2023
Withdrawal
The physiological and mental reaction to such discontinuance, often characterized by distressing symptoms
Is going through withdrawal from opioids.
Shumaila Saeed
Oct 19, 2023
Deposit
A sum of money given as security for an item acquired for temporary use.
Shumaila Saeed
Oct 19, 2023
Withdrawal
(Informal) A condition likened to that which is experienced when discontinuing use of an addictive substance
Has been going through withdrawal since his favorite show ended.
Shumaila Saeed
Oct 19, 2023
Withdrawal
The act or an instance of retracting or revoking
Feared the withdrawal of his parents' permission.
Shumaila Saeed
Oct 19, 2023
Deposit
(Geology) A concentration of mineral matter or sediment in a layer, vein, or pocket
Iron ore deposits.
Rich deposits of oil and natural gas.
Shumaila Saeed
Oct 19, 2023
Deposit
(Physiology) An accumulation of organic or inorganic material, such as a lipid or mineral, in a body tissue, structure, or fluid.
Shumaila Saeed
Oct 19, 2023
Withdrawal
Receiving from someone's care what one has earlier entrusted to them. Usually refers to money.
Shumaila Saeed
Oct 19, 2023
Withdrawal
A method of birth control which consists of removing the penis from the vagina before ejaculation.
Shumaila Saeed
Oct 19, 2023
Deposit
A coating or crust left on a surface, as by evaporation or electrolysis.
Shumaila Saeed
Oct 19, 2023
Withdrawal
A type of metabolic shock the body undergoes when a substance, usually a toxin such as heroin, to which a patient is dependent is withheld. Sometimes used with the substance as modifier.
Heroin withdrawal
Nicotine withdrawal
Caffeine withdrawal
Shumaila Saeed
Oct 19, 2023
Deposit
(geology) Sediment or rock that is not native to its present location or is different from the surrounding material. Sometimes refers to ore or gems.
Shumaila Saeed
Oct 19, 2023
Deposit
That which is placed anywhere, or in anyone's hands, for safekeeping; something entrusted to the care of another.
Shumaila Saeed
Oct 19, 2023
Deposit
Anything left behind on a surface.
A mineral deposit
A deposit of seaweed on the shore
A deposit of jam on my countertop
Shumaila Saeed
Oct 19, 2023
Deposit
(finance) A sum of money or other asset given as an initial payment, to show good faith, or to reserve something for purchase.
They put down a deposit on the apartment.
Shumaila Saeed
Oct 19, 2023
Deposit
A sum of money given as a security for a borrowed item, which will be given back when the item is returned, e.g. a bottle deposit or can deposit
Shumaila Saeed
Oct 19, 2023
Deposit
(transitive) To lay down; to place; to put.
A crocodile deposits her eggs in the sand.
The waters deposited a rich alluvium.
Shumaila Saeed
Oct 19, 2023
Deposit
To lay up or away for safekeeping; to put up; to store.
To deposit goods in a warehouse
Shumaila Saeed
Oct 19, 2023
Deposit
To entrust one's assets to the care of another. Sometimes done as collateral.
Shumaila Saeed
Oct 19, 2023
Withdrawal
The act of retreating or pulling back.
The army's withdrawal was strategic.
Shumaila Saeed
Dec 07, 2023
Deposit
(transitive) To put money or funds into an account.
I had to deposit two months' rent into my landlord's account before he gave me the keys.
Shumaila Saeed
Oct 19, 2023
Deposit
To lay down; to place; to put; to let fall or throw down (as sediment); as, a crocodile deposits her eggs in the sand; the waters deposited a rich alluvium.
The fear is deposited in conscience.
Shumaila Saeed
Oct 19, 2023
Deposit
To lay up or away for safe keeping; to put up; to store; as, to deposit goods in a warehouse.
Shumaila Saeed
Oct 19, 2023
Deposit
To lodge in some one's hands for safe keeping; to commit to the custody of another; to intrust; esp., to place in a bank, as a sum of money subject to order.
Shumaila Saeed
Oct 19, 2023
Deposit
To lay aside; to rid one's self of.
If what is written prove useful to you, to the depositing that which I can not but deem an error.
Shumaila Saeed
Oct 19, 2023
Deposit
That which is deposited, or laid or thrown down; as, a deposit in a flue; especially, matter precipitated from a solution (as the siliceous deposits of hot springs), or that which is mechanically deposited (as the mud, gravel, etc., deposits of a river).
The deposit already formed affording to the succeeding portion of the charged fluid a basis.
Shumaila Saeed
Oct 19, 2023
Deposit
A natural occurrence of a useful mineral under the conditions to invite exploitation.
Shumaila Saeed
Oct 19, 2023
Deposit
That which is placed anywhere, or in any one's hands, for safe keeping; something intrusted to the care of another; esp., money lodged with a bank or banker, subject to order; anything given as pledge or security.
Shumaila Saeed
Oct 19, 2023
Deposit
A bailment of money or goods to be kept gratuitously for the bailor.
Shumaila Saeed
Oct 19, 2023
Deposit
A partial payment made at the time of purchase; the balance to be paid later
Shumaila Saeed
Oct 19, 2023
Deposit
Money given as security for an article acquired for temporary use;
His deposit was refunded when he returned the car
Shumaila Saeed
Oct 19, 2023
Deposit
A facility where things can be deposited for storage or safekeeping
Shumaila Saeed
Oct 19, 2023
Deposit
Put (something somewhere) firmly;
She posited her hand on his shoulder
Deposit the suitcase on the bench
Fix your eyes on this spot
Shumaila Saeed
Oct 19, 2023
Deposit
Placing money into a financial account.
I made a deposit of $500 into my savings account.
Shumaila Saeed
Dec 07, 2023
Deposit
A sum payable as a first installment.
We put down a deposit on the new car.
Shumaila Saeed
Dec 07, 2023
Deposit
A natural accumulation of resources.
The region is rich in mineral deposits.
Shumaila Saeed
Dec 07, 2023
Deposit
A returnable sum paid to cover potential damage.
We paid a deposit for the apartment rental.
Shumaila Saeed
Dec 07, 2023
Repeatedly Asked Queries
How do I make a deposit?
You can deposit via cash, check, or electronic transfer.
Shumaila Saeed
Dec 07, 2023
Can I withdraw money from any ATM?
Yes, but fees may apply if it's not your bank's ATM.
Shumaila Saeed
Dec 07, 2023
Are withdrawals instant?
Generally, yes, but it can vary based on the method.
Shumaila Saeed
Dec 07, 2023
Is there a fee for deposits?
Usually, there are no fees for making a deposit.
Shumaila Saeed
Dec 07, 2023
Can I cancel a withdrawal?
Once processed, withdrawals typically cannot be canceled.
Shumaila Saeed
Dec 07, 2023
Are withdrawals taxable?
They can be, particularly from retirement accounts.
Shumaila Saeed
Dec 07, 2023
How long does a deposit take to clear?
It varies, but usually 1-2 business days.
Shumaila Saeed
Dec 07, 2023
Do all accounts accept deposits?
Most do, but some specialized accounts may have restrictions.
Shumaila Saeed
Dec 07, 2023
What is a withdrawal limit?
It's the maximum amount you can withdraw at once or in a given period.
Shumaila Saeed
Dec 07, 2023
Do deposits earn interest?
Yes, in interest-bearing accounts like savings accounts.
Shumaila Saeed
Dec 07, 2023
Can I withdraw money in a different currency?
Yes, at ATMs or banks that offer foreign currency exchange.
Shumaila Saeed
Dec 07, 2023
How do I know if my deposit is secure?
Ensure your bank is FDIC insured or has similar protection.
Shumaila Saeed
Dec 07, 2023
Can I withdraw to pay bills?
Yes, withdrawals can be used for bill payments.
Shumaila Saeed
Dec 07, 2023
Are there penalties for early withdrawal?
Yes, especially in fixed deposits or retirement accounts.
Shumaila Saeed
Dec 07, 2023
What's a direct deposit?
It's an electronic transfer of funds directly into your account.
Shumaila Saeed
Dec 07, 2023
What happens if I deposit a bad check?
The deposit will be reversed, and you may face fees.
Shumaila Saeed
Dec 07, 2023
Can I track my deposits and withdrawals?
Yes, through bank statements or online banking.
Shumaila Saeed
Dec 07, 2023
Share this page
Link for your blog / website
HTML
Link to share via messenger
About Author
Written by
Shumaila SaeedShumaila Saeed, an expert content creator with 6 years of experience, specializes in distilling complex topics into easily digestible comparisons, shining a light on the nuances that both inform and educate readers with clarity and accuracy.
Hifza Nasir
Shumaila Saeed
