Viewed from the standpoint of origin, the deposits of a commercial bank may be grouped as public or private. The United States government maintains accounts with many of the large national banks throughout the country, and likewise states and municipalities deposit their funds in local institutions. Banks are always desirous of receiving these funds, because of the added confidence of the community in depositories of government moneys. These balances in themselves are especially valuable, as they are not generally subject to unexpected withdrawals and so remain relatively constant in amount. Public deposits are created either from receipts of taxes, customs duties, and other revenues, or from loans by banks to governments through the purchase of bonds, certificates of indebtedness, and other public securities. However, the bulk of bank deposits are derived not from public, but private sources. In the United States the system of making payments through checks has developed so extensively that even persons of moderate means carry bank accounts for handling their domestic disbursements. A banking connection is essential to the small business man as well as to the large firm. The accounts of persons, partnerships, and corporations are all grouped together as individual deposits, to distinguish them from balances left with a bank by other banks. Country banks maintain accounts with correspondents in the large cities in order to draw drafts against these funds and sell them to local customers who wish to remit funds to New York, Chicago, Boston, and other business centers. Because of the inability at times to find suitable placement at home, country banks are forced to send their surpluses to metropolitan correspondents, which may lend them on the open money market and are thus able to allow interest. Banks also maintain reciprocal balances to facilitate the collection of items drawn by their customers on banks or business houses in other cities.

Deposits are also made by trustees acting in such capacities as guardians of minors and executors of estates. The funds are left with the bank until suitable opportunity for investment arises or final settlement of an estate is effected Thus private deposits may be classified as individual, bank, and fiduciary.

Accounts differ somewhat as to the method in which each is opened. A bank will accept a new fiduciary account only if the trustee can show an order from the court appointing him as guardian, executor, receiver, or in some other fiduciary capacity. When a corporation opens a new account it is necessary for the organization to submit a certified copy of the by-laws or resolutions authorizing the deposit of funds and empowering an officer such as the treasurer to draw checks against these deposits. A bank usually insists upon identification before accepting a new account from an individual. He may bring written references or be personally introduced by another depositor of the bank. These precautions must be taken by the bank, for it assumes a certain amount of risk in giving a checking account to a stranger, who may use it to perpetrate a fraud. If the credentials of the applicant are unsatisfactory, the bank will deny his request for an account. In fact, the bank has a right either to refuse or later to close an account at any time, if such step is warranted by the actions of the depositor. However, a new account is seldom rejected, and the applicant soon finds himself an accepted depositor of the bank after complying with certain formalities. The applicant for an account fills out a card supplying information concerning his business, a statement agreeing to observe the bank's regulations, and a blank giving a specimen of his signature.