Deposit vs. Withdraw — What's the Difference?
By Tayyaba Rehman & Urooj Arif — Updated on April 23, 2024
A deposit involves placing money into a bank account, while a withdraw (withdrawal) entails taking money out of one's bank account.
Difference Between Deposit and Withdraw
Table of Contents
ADVERTISEMENT
Key Differences
Deposits are transactions where funds are added to an account, increasing the account balance. These can include direct deposits from employers, transfers from other accounts, or depositing cash and checks at a bank. Conversely, withdrawals reduce the account balance and can be performed via ATM machines, writing checks, or using online banking services to transfer money out.
When considering interest accrual in savings accounts, deposits can enhance the earning potential by increasing the principal amount that accrues interest. On the other hand, withdrawals might decrease the interest earned by reducing the principal amount.
From a financial management perspective, regular deposits are a key part of building savings and improving financial health. In contrast, frequent withdrawals may indicate spending habits that could undermine savings goals and financial stability.
Deposit transactions are often encouraged by banks through rewards or bonuses for maintaining certain balances, reflecting a strategy to keep funds within the bank. Withdrawals, while necessary for liquidity and access to funds, are typically not incentivized and may even be restricted with fees or limits depending on the account type.
The process of depositing often requires verification of the funds and source, especially for large amounts, to ensure legality and prevent fraud. Withdrawals, particularly large ones, might also require verification or advance notice to ensure security and availability of funds.
ADVERTISEMENT
Comparison Chart
Definition
Adding money to a bank account
Taking money out of a bank account
Impact on Account
Increases account balance
Decreases account balance
Common Methods
Cash, check, transfer, direct deposit
ATM, check, transfer
Financial Implication
Can increase interest accrual
Can decrease interest accrual
Usage Strategy
Builds savings, enhances financial health
Provides liquidity, manages spending
Compare with Definitions
Deposit
To place for later retrieval.
She deposited her valuables in a safe deposit box.
Withdraw
To remove funds for spending or payments.
They withdrew enough cash for their vacation expenses.
Deposit
To put money into a bank account.
He made a deposit of $500 into his checking account.
Withdraw
To take money out of a bank account.
She went to the ATM to withdraw $200.
Deposit
The act of placing money for safekeeping or savings.
Regular monthly deposits help in accumulating savings over time.
Withdraw
The act of removing funds from an account.
He made a large withdrawal to pay for the car.
Deposit
Money held in a bank account.
His account showed a substantial increase after the latest deposit.
Withdraw
Funds taken out of a banking account.
His withdrawal left the account nearly empty.
Deposit
Funds that are added to an account.
The deposit was reflected in her account balance immediately.
Withdraw
Reducing the balance by taking out money.
Withdrawals over $500 require notifying the bank in advance.
Deposit
A sum of money paid into a bank or building society account
Cash funds which are an alternative to bank or building society deposits
Withdraw
Remove or take away (something) from a particular place or position
She prised open the lid and withdrew a slim diamond ring
Ruth withdrew her hand from his
Deposit
A sum payable as a first instalment on the purchase of something or as a pledge for a contract, the balance being payable later
We've saved enough for a deposit on a house
Withdraw
Leave or cause to leave a place or situation
UN forces withdrew from the province
Both countries agreed to withdraw their troops
Deposit
A layer or mass of accumulated matter
The deposits of salt on the paintwork
Withdraw
Cease to take an addictive drug
For the cocaine user, it is possible to withdraw without medication
Deposit
The action of placing something in a specified place
I'd like to make a deposit
The deposit of a thesis in a library gives no guarantee of copyright protection
Withdraw
To take back or away; remove
Withdrew his hand from the cookie jar.
Deposit
Put or set down (something or someone) in a specific place
He deposited a pile of school books on the kitchen table
Withdraw
To cause to leave or return
The government withdrew its diplomats from the capital.
Deposit
Place (something) somewhere for safekeeping
A vault in which guests may deposit valuable property
Withdraw
To remove (money) from an account.
Deposit
To put or set down; place.
Withdraw
To turn away (one's gaze, for example).
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.
Withdraw
To draw aside
Withdrew the curtain.
Deposit
To give over or entrust for safekeeping.
Withdraw
To remove from consideration or participation
Withdrew her application.
Withdrew his son from the race.
Deposit
To put (money) in a bank or financial account.
Withdraw
To recall or retract
Withdrew the accusation.
Deposit
To give as partial payment or security.
Withdraw
To move or draw back; retire
The lawyers withdrew to the judge's chambers.
Deposit
To become deposited; settle.
Withdraw
To leave or return, as from a military position.
Deposit
Something, such as money, that is entrusted for safekeeping, as in a bank.
Withdraw
To remove oneself from active participation
Withdrew from the competition.
Deposit
The condition of being deposited
Funds on deposit with a broker.
Withdraw
To become detached from social or emotional involvement
After the snubbing, he withdrew into a shell.
Deposit
A partial or initial payment of a cost or debt
Left a $100 deposit toward the purchase of a stereo system.
Withdraw
To recall or remove a motion from consideration in parliamentary procedure.
Deposit
A sum of money given as security for an item acquired for temporary use.
Withdraw
To discontinue the use of a drug or other substance, especially one that is addictive.
Deposit
A depository.
Withdraw
To react physiologically and mentally to this discontinuance, often while experiencing distressing symptoms.
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.
Withdraw
(transitive)
Deposit
(Physiology) An accumulation of organic or inorganic material, such as a lipid or mineral, in a body tissue, structure, or fluid.
Withdraw
To draw or pull (something) away or back from its original position or situation.
Deposit
A sediment or precipitate that has settled out of a solution.
Withdraw
To take away or take back (something previously given or permitted); to remove, to retract.
Deposit
A coating or crust left on a surface, as by evaporation or electrolysis.
Withdraw
To cause or help (someone) to stop taking an addictive drug or substance; to dry out.
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.
Withdraw
To take (one's eyes) off something; to look away.
Deposit
That which is placed anywhere, or in anyone's hands, for safekeeping; something entrusted to the care of another.
Withdraw
(figuratively)
Deposit
(banking) Money placed in an account.
Withdraw
To distract or divert (someone) from a course of action, a goal, etc.
Deposit
Anything left behind on a surface.
A mineral deposit
A deposit of seaweed on the shore
A deposit of jam on my countertop
Withdraw
To extract (money) from a bank account or other financial deposit.
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.
Withdraw
(intransitive)
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
Withdraw
Chiefly followed by from: to leave a place, someone's presence, etc., to go to another room or place.
Deposit
A place of deposit; a depository.
Withdraw
Chiefly followed by from: to stop taking part in some activity; also, to remove oneself from the company of others, from publicity, etc.
Deposit
(transitive) To lay down; to place; to put.
A crocodile deposits her eggs in the sand.
The waters deposited a rich alluvium.
Withdraw
To stop talking to or interacting with other people and start thinking thoughts not related to what is happening.
Deposit
To lay up or away for safekeeping; to put up; to store.
To deposit goods in a warehouse
Withdraw
To stop taking an addictive drug or substance; to undergo withdrawal.
Deposit
To entrust one's assets to the care of another. Sometimes done as collateral.
Withdraw
Of a man: to remove the penis from a partner's body orifice before ejaculation; to engage in coitus interruptus.
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.
Withdraw
An act of drawing back or removing; a removal, a withdrawal or withdrawing.
Deposit
To lay aside; to rid oneself of.
Withdraw
(law) withdraught
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.
Withdraw
To take back or away, as what has been bestowed or enjoyed; to draw back; to cause to move away or retire; as, to withdraw aid, favor, capital, or the like.
Impossible it is that God should withdraw his presence from anything.
Deposit
To lay up or away for safe keeping; to put up; to store; as, to deposit goods in a warehouse.
Withdraw
To take back; to recall or retract; as, to withdraw false charges.
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.
Withdraw
To retire; to retreat; to quit a company or place; to go away; as, he withdrew from the company.
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.
Withdraw
Pull back or move away or backward;
The enemy withdrew
The limo pulled away from the curb
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.
Withdraw
Withdraw from active participation;
He retired from chess
Deposit
A natural occurrence of a useful mineral under the conditions to invite exploitation.
Withdraw
Release from something that holds fast, connects, or entangles;
I want to disengage myself from his influence
Disengage the gears
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.
Withdraw
Cause to be returned;
Recall the defective auto tires
The manufacturer tried to call back the spoilt yoghurt
Deposit
A bailment of money or goods to be kept gratuitously for the bailor.
Withdraw
Take back what one has said;
He swallowed his words
Deposit
A place of deposit; a depository.
Withdraw
Keep away from others;
He sequestered himself in his study to write a book
Deposit
The phenomenon of sediment or gravel accumulating
Withdraw
Break from a meeting or gathering;
We adjourned for lunch
The men retired to the library
Deposit
Matter deposited by some natural process
Withdraw
Retire gracefully;
He bowed out when he realized he could no longer handle the demands of the chairmanship
Deposit
The natural process of laying down a deposit of something
Withdraw
Remove (a commodity) from (a supply source);
She drew $2,000 from the account
The doctors drew medical supplies from the hospital's emergency bank
Deposit
Money deposited in a bank
Withdraw
Lose interest;
He retired from life when his wife died
Deposit
A partial payment made at the time of purchase; the balance to be paid later
Withdraw
Make a retreat from an earlier commitment or activity;
We'll have to crawfish out from meeting with him
He backed out of his earlier promise
The aggressive investment company pulled in its horns
Deposit
Money given as security for an article acquired for temporary use;
His deposit was refunded when he returned the car
Deposit
A payment given as a guarantee that an obligation will be met
Deposit
A facility where things can be deposited for storage or safekeeping
Deposit
The act of putting something somewhere
Deposit
Fix, force, or implant;
Lodge a bullet in the table
Deposit
Put into a bank account;
She deposites her paycheck every month
Deposit
Put (something somewhere) firmly;
She posited her hand on his shoulder
Deposit the suitcase on the bench
Fix your eyes on this spot
Common Curiosities
Are there limits to how much I can deposit or withdraw?
Banks may set limits on both deposits and withdrawals for security reasons, and these limits can vary by account type and bank policies.
Is there a best practice for balancing deposits and withdrawals?
Balancing deposits and withdrawals involves maintaining enough liquidity for everyday needs while ensuring that savings and investment goals are not compromised.
What is the primary difference between a deposit and a withdrawal?
The primary difference is that a deposit increases your bank account balance, whereas a withdrawal decreases it.
Why are deposits crucial for financial health?
Deposits are crucial because they help build savings, accrue interest, and ensure funds are available for future needs or investments.
What should I consider before making a large withdrawal?
Before making a large withdrawal, consider the impact on your account balance, potential fees, and whether advanced notice is required by the bank.
Can I withdraw money from any bank?
You can generally withdraw money from any bank, but fees may apply if it's not your bank or if specific account limitations are in place.
What are the benefits of making regular deposits?
Regular deposits can help in accumulating savings, earning interest, and maintaining a buffer for emergencies.
How can frequent withdrawals affect my financial situation?
Frequent withdrawals can deplete savings, reduce the money available for emergencies, and may lead to potential financial instability.
How does interest work with deposits and withdrawals?
Interest on savings accounts is calculated on the principal amount in the account; more deposits increase the principal and potential interest, while withdrawals decrease it.
Can I deposit or withdraw money using mobile banking?
Yes, mobile banking often allows for both deposits (via check images) and withdrawals (through transfers or bill payments).
Share Your Discovery
Previous Comparison
Offspring vs. Progeny
Next Comparison
Goyish vs. GoyisheAuthor Spotlight
Written by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
Co-written by
Urooj ArifUrooj is a skilled content writer at Ask Difference, known for her exceptional ability to simplify complex topics into engaging and informative content. With a passion for research and a flair for clear, concise writing, she consistently delivers articles that resonate with our diverse audience.
