A
bank account is a financial account with a
banking institutionA banking institution provides banking services.They include:* Banks* Credit unions* Savings and loan association* Building societies* Non-banking financial company* Some insurance companies...
, recording the financial transactions between the customer and the bank and the resulting financial position of the customer with the bank.
Bank accounts may have a positive, or
debitDebits and Credits may refer to:* Debits and credits* Debits and Credits...
balance, where the bank owes money to the customer; or a negative, or
creditDebits and Credits may refer to:* Debits and credits* Debits and Credits...
balance, where the customer owes the bank money.
Broadly, accounts opened with the purpose of holding credit balances are referred to as
deposit accountA deposit account is a current account, savings account, or other type of bank account, at a banking institution that allows money to be deposited and withdrawn by the account holder. These transactions are recorded on the bank's books, and the resulting balance is recorded as a liability for the...
s; whilst accounts opened with the purpose of holding debit balances are referred to as loan accounts.
Some accounts are defined by their function rather than nature of the balance they hold.
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A
bank account is a financial account with a
banking institutionA banking institution provides banking services.They include:* Banks* Credit unions* Savings and loan association* Building societies* Non-banking financial company* Some insurance companies...
, recording the financial transactions between the customer and the bank and the resulting financial position of the customer with the bank.
Bank accounts may have a positive, or
debitDebits and Credits may refer to:* Debits and credits* Debits and Credits...
balance, where the bank owes money to the customer; or a negative, or
creditDebits and Credits may refer to:* Debits and credits* Debits and Credits...
balance, where the customer owes the bank money.
Broadly, accounts opened with the purpose of holding credit balances are referred to as
deposit accountA deposit account is a current account, savings account, or other type of bank account, at a banking institution that allows money to be deposited and withdrawn by the account holder. These transactions are recorded on the bank's books, and the resulting balance is recorded as a liability for the...
s; whilst accounts opened with the purpose of holding debit balances are referred to as loan accounts.
Some accounts are defined by their function rather than nature of the balance they hold. Bank accounts designed to process large numbers of transactions may offer credit and debit facilities and therefore do not sit easily with a polarised definition. These transactional accounts are called by different names in different countries: in the U.S. and Canada, they are called "checking accounts"; in the UK, they are termed "current accounts".
Other account types
- Savings account
Savings accounts are accounts maintained by retail financial institutions that pay interest but can not be used directly as money...
- Transactional account
- Joint account
Joint account is a bank account shared by two or more individuals. Any individual who is a member of the joint account can withdraw from the account and deposit to it. Usually, joint accounts are shared between close relatives or business partners....
- Low-cost account
Low-cost accounts are accounts with monthly fees of no more than C$4.00, offered in Canada. Low-cost accounts came about as a result of an agreement between the Canadian federal government and the banking sector...
- Time deposit
A time deposit is a money deposit at a banking institution that cannot be withdrawn for a certain "term" or period of time. When the term is over it can be withdrawn or it can be held for another term...
/ certificate of depositA certificate of deposit or CD is a time deposit, a financial product commonly offered to consumers by banks, thrift institutions, and credit unions....
- Numbered bank account
A numbered bank account is a normal bank account where the name of the bank client is replaced by a number or a code word. A numbered bank account is under no circumstances anonymous and differs in neither legal nor tax matters from a normal banking relationship...
- Negotiable Order of Withdrawal account
In the United States, a Negotiable Order of Withdrawal account is a deposit account that pays interest, on which checks may be written....
- Automatic transfer service account
An automatic transfer service account is a deposit account that allows the transfer of funds from a savings account to a checking account in order to cover a check written or to maintain a minimum balance....
- Money market deposit account
A money market account is a deposit account with a relatively high rate of interest, and short notice required for withdrawals...
- Individual Savings Account
An Individual Savings Account is a financial product available to residents in the United Kingdom. It is designed for the purpose of investment and savings with a favourable tax status.-Introduction of ISAs:...
- Tax-Exempt Special Savings Account
In the UK, the Tax-Exempt Special Savings Account was one of a number of tax-free savings accounts. The TESSA was announced by John Major in his only Budget as Chancellor of the Exchequer in 1990...
- Transaction deposit
In the United States transactions deposit is a term used by the Federal Reserve for checkable deposits and other accounts that can be used directly as cash without withdrawal limits or restrictions. They are the only bank deposits that require the bank to keep reserves at the central bank...
- Nostro and vostro accounts
- personal account
- Overdraft Free Account
Canada
The Government of Canada maintains a database of the fees and features of bank account packages offered by various financial institutions operating in Canada. The information is periodically incorporated in comparative tables and published in booklet form. The tables are also published in PDF form on the website of the
Financial Consumer Agency of CanadaThe Financial Consumer Agency of Canada is an independent government agency of the Government of Canada.Created in 2001, the agency works to protect and inform consumers in the area of financial services. FCAC provides consumer information and oversees financial institutions to ensure that they...
. The database also feeds into an interactive online tool
http://www.fcac-acfc.gc.ca/eng/consumers/ITools/CoB/default.asp, that allows consumers to compare various bank-account packages online.