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Learning the process of adding money to a bank account and the different ways to do it.
Imagine you just received $50 for your birthday! If you keep it in your pocket, it might get lost or accidentally spent. But what if you could teleport that money into a secure digital vault where it stays safe until you need it?
A deposit is simply the act of putting money into a bank account. Think of it like 'saving' your progress in a video game; once the money is deposited, the bank keeps a digital record of it for you. Money for deposits usually comes from sources like your allowance, birthday gifts, or a paycheck from a job. When you deposit money, your account balance—the total amount of money you have in the bank—goes up. It is the opposite of a withdrawal, which is when you take money out.
Quick Check
If you put $20 from your lawn-mowing job into your savings account, what is that action called?
Answer
A deposit.
When you visit a bank in person, you often use a deposit slip. This is a small paper form that tells the bank three things: who you are (your account number), what you are giving them (cash or checks), and the total amount. You must list each item separately. For example, if you have two checks, you list them on different lines and then add them up to find the subtotal. If you want some 'cash back' immediately, you subtract that from the total.
Quick Check
Why is it important to write your account number on a deposit slip?
Answer
So the bank knows exactly which person's account should receive the money.
You don't always have to go to a bank building! Most banks have apps for mobile deposits. To do this, you must first endorse the check by signing your name on the back. Then, you use the app to take a clear photo of the front and the back of the check. The app uses special software to 'read' the check and add the money to your account. It's like sending a digital picture of your money to the bank's vault!
Whenever you make a deposit, the bank gives you a receipt. Always keep this! Sometimes computers make mistakes, or a check might take a few days to 'clear' (which means the bank confirms the money is real). By keeping your receipts and checking your bank statement every month, you ensure that your hard-earned money is exactly where it should be.
What happens to your account balance when you make a deposit?
What must you do to the back of a check before depositing it via a mobile app?
A deposit slip is used to tell the bank how much money you want to take out of your account.
Review Tomorrow
Tomorrow morning, try to explain to a family member the difference between a physical deposit and a mobile deposit.
Practice Activity
Ask a parent or guardian if you can see a deposit receipt or a deposit slip to see how the account number and totals are listed.