A deposit is a sum of money placed into a bank account or financial institution. This action is often done to save money, earn interest, or prepare for future expenses. Deposits can be made in various forms, including cash, checks, or electronic transfers. In addition to personal banking, deposits are also common in real estate transactions. A security deposit is often required when renting a property, serving as a financial guarantee for the landlord against potential damages or unpaid rent. This ensures that both parties have a level of security in the agreement.