A general deposit differs from the special in respect to composition, title, and liability. A general deposit consists largely of cash or cash items which include checks, notes, drafts, or coupons. The actual ownership passes immediately from the depositor to the bank, which does not segregate each deposit, but combines them indiscriminately. In exchange for his deposit, the customer receives a claim in his favor on the books of the bank, which then assumes the position of a debtor. The depositor, as creditor, has the right to demand payment for all or part of the amount left with the bank, which in turn is bound to refund this sum from its general assets.

General deposits are payable either on demand or after a certain period of time. Demand deposits may be withdrawn immediately from the bank by means of checks, while time deposits are payable only after a lapse of a certain number of days. Sums left with savings institutions are really time deposits, for the banks may in an emergency insist upon a notice of thirty to sixty days from depositors who wish a refund of their money. Commercial or business banks handle mainly demand accounts, but receive also time or savings deposits which are payable only after notice, usually of thirty days, has been filed by the customer. As the bank is thus relieved of the necessity of effecting payment at sight, it is able to invest these funds in slower assets. Besides, a bank which is a member of the Federal Reserve system derives a further advantage from deposits which can be withdrawn only after thirty days' notice, since these require the maintenance of a lower percentage of legal reserve than against demand deposits. The bank is, therefore, solicitous of securing time deposits, and so as an inducement offers its customers a rate of interest higher than that paid on demand deposits.