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What is a lodgment at a bank?

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Quick Answer

In finance, a lodgment is a deposit of funds into a bank account, according to Oxford Dictionaries. The term originated in the late 16th century and comes from the French word "logement," which derives from the Old French term "loge," meaning a dwelling.

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Full Answer

Oxford Dictionaries includes the word "lodgement" in both its U.K. and U.S. English definitions. In U.S. English, the term is spelled "lodgment," whereas in British English, it is spelled "lodgement." In Ireland, people use what is called a lodgment slip to deposit money into a bank account, according to Wikipedia. An example of a sentence that illustrates how to use lodgment within the context of banking is, "The company executed a temporary lodgment of its capital in a bank account."

In both U.S. and U.K. English, the term "lodgment" is primarily literary, notes Oxford Dictionaries. Oxford's definition of the word is a place where a person or thing is located or lodged.

Reference.com cites an example of a sentence that employs the term "lodgment" as, "Every such writing shall be recorded within one month after its lodgment, and the recording shall bear even date with the lodgment." Collins Dictionary offers this example of Australian usage of the term: "Online banking also rated highly, as did electronic lodgment of documents and the audit trail that process creates."

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