What is a deposit account?

A deposit account specifically refers to an account that is maintained with a financial institution, such as a bank or credit union, where individuals or businesses can deposit money. This definition aligns with the common understanding of what constitutes a deposit account, which generally includes savings accounts, checking accounts, and other similar types of accounts that hold cash or cash equivalents.

In the context of secured transactions, recognizing the correct term is crucial for understanding how these accounts may be treated under the Uniform Commercial Code (UCC) in matters such as perfection of security interests. The distinction of deposit accounts from broader financial tools is significant, as it directly influences the legal and financial rights creditors possess in relation to these assets.

Considering the context provided, other incorrect options fail to capture the specific nature of a deposit account, varying from the broader categories to misrepresentations of the concept's function in financial transactions.