### Question
How is the term deposits defined?


### Answer
The term **deposits** is defined in *26 U.S.C. § 871* as the following:

> amounts which are—



(A) deposits with persons carrying on the banking business,



(B) deposits or withdrawable accounts with savings institutions chartered and supervised as savings and loan or similar associations under Federal or State law, but only to the extent that amounts paid or credited on such deposits or accounts are deductible under section 591 (determined without regard to sections 265 and 291) in computing the taxable income of such institutions, and



(C) amounts held by an insurance company under an agreement to pay interest thereon

#### Citation:
  - *26 U.S.C. § 871*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter N-Tax Based on Income From Sources Within or Without the United States > PART II-NONRESIDENT ALIENS AND FOREIGN CORPORATIONS > Subpart A-Nonresident Alien Individuals**

