Demand account
Encyclopedia
A transactional account is a deposit account
held at a bank
or other financial institution
, for the purpose of securely and quickly providing frequent access to funds on demand, through a variety of different channels.
Transactional accounts are meant neither for the purpose of earning interest nor for the purpose of savings, but for convenience of the business or personal client; hence they tend not to bear interest. Instead, a customer can deposit or withdraw any amount of money any number of times, subject to availability of funds.
, and as a current account or cheque account in the United Kingdom
, Hong Kong
and some other countries. Because money is available on demand it is also sometimes known as a demand account or demand deposit account.
was a major trading and shipping city. In order to protect their large accumulations of cash, people began to depositing their money with "cashiers". These cashiers held the money for a fee. Competition drove cashiers to offer additional services including paying out money to any person bearing a written order from a depositor to do so. They kept the note as proof of payment.
This idea spread to other countries including England
, and the English colonies in North America, where land owners in Boston
in 1681 mortgaged their land to cashiers which would provide an account against which they could write checks.
In the eighteenth century in England preprinted checks, serial numbers, and the very word "cheque
" appeared. By the late eighteenth century, the difficulty of clearing checks (sending them from one bank to another for collection) gave rise to the development of clearing houses
.
or a passbook
. A transactional account allows the account holder to make or receive payments by:
Certain modes of payment are country-specific:
, counter services and financial advice.
, Regulation Q
(12 CFR 217) and the Banking Acts of 1933 and 1935 (12 USC 371a) prohibited a member of the Federal Reserve system from paying interest on chequing accounts. Historically, this restriction was frequently circumvented by either creating an account type such as a Negotiable Order of Withdrawal account
(NOW account) which is legally not a chequing account or by offering interest paying chequing through a bank which is not a member of the Federal Reserve system.
The Dodd-Frank Wall Street Reform and Consumer Protection Act, however, passed by Congress and signed into law by President Obama on July 21, 2010, repealed the statutes that prohibit interest-bearing transactional accounts, effectively repealing Regulation Q (Pub. L. 111-203, Section 627). The repeal took effect on July 21, 2011. Since that date, financial institutions have been permitted, but not required, to offer interest-bearing transactional accounts.
In 2003, banks and credit unions began to establish maximum balance accounts, which pay a premium rate up to a specified cap and a lower rate on balances above the cap. This counter-traditional trend (banks had typically established minimum account balances rather than maximum account balances) developed as a way to allow financial institutions to attract multiple customer relationships while limiting the interest expense associated with each account.
The first maximum balance, high-interest chequing account was offered in 2003 by a small community bank in New Mexico, Pioneer Bank. In 2004 and 2005, several community banks in West Texas adopted the idea, and a 3rd party vendor, BancVue
, combined the maximum-balance concept with the idea of a higher yield for customers who adopt specific cost-savings behaviors, as a "Reward" Checking account.
Other imitators rapidly followed. By 2010, over 1.5 million REWARDChecking(r) accounts had been opened at BancVue's clients alone.
The repeal of Regulation Q, which previously prohibited the payment of interest on standard transactional accounts, took effect too recently for it to have shown a major impact on banking practices. It is likely, however, that as time progresses the popularity of these alternative "checking" accounts will decline as clients opt for the less restrictive rules governing standard transactional accounts.
institutions offer access to current accounts via online banking.
. In many cases such calls are to a call centre
or automated service, although some institutions continue to answer such calls in their branches. Often call centre opening times are considerably longer than branches, and some firms provide these services on a 24 hour basis.
s depends on a variety of factors, including the country and its overall interest rates for lending and for saving, as well as the size of the financial institution and the number of channels of access it offers. This is why operating few or no branches
can afford to offer low-cost or free banking, and why, in some countries, transaction fees do not exist, but extremely high lending rates are the normal.
Financial transaction fees may be charged either per item or for a flat rate
covering a certain number of transactions. Often, youth
s, student
s, senior citizen
s or high-valued customers do not pay fees for basic financial transactions. Some will offer free transactions for maintaining a very high average balance in their account. Other service charges are applicable for overdraft
, non-sufficient funds
, the use of an external interbank network
, etc. In countries where there are no service charges for transaction fees, there are, on the other hand, other recurring service charges such as a debit card
annual fee.
and other countries with a UK banking heritage; a current account offers various flexible payment methods to allow customers to distribute money directly to others. Most current accounts come with a cheque book and offer the facility to arrange standing orders
, direct debit
s and payment via a debit card
. Current accounts may also allow borrowing via an overdraft
facility.
facility the size of which is based upon affordability and credit history. This overdraft facility can be used at any time without consulting the bank and can be maintained indefinitely (subject to ad-hoc reviews). Although an overdraft facility may be authorised, technically the money is repayable on demand by the bank. In reality this is a rare occurrence as the overdrafts are profitable for the bank and expensive for the customer.
(telephone, internet or postal based) tend to pay higher levels of interest. The same holds true for banks within the EURO currency zone.
Account type related
Deposit account
A 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...
held at a bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
or other financial institution
Financial institution
In financial economics, a financial institution is an institution that provides financial services for its clients or members. Probably the most important financial service provided by financial institutions is acting as financial intermediaries...
, for the purpose of securely and quickly providing frequent access to funds on demand, through a variety of different channels.
Transactional accounts are meant neither for the purpose of earning interest nor for the purpose of savings, but for convenience of the business or personal client; hence they tend not to bear interest. Instead, a customer can deposit or withdraw any amount of money any number of times, subject to availability of funds.
Name
A transactional account is known as a checking account (or chequing account) in North AmericaNorth America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
, and as a current account or cheque account in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
and some other countries. Because money is available on demand it is also sometimes known as a demand account or demand deposit account.
History
In Holland in the early 1500s AmsterdamAmsterdam
Amsterdam is the largest city and the capital of the Netherlands. The current position of Amsterdam as capital city of the Kingdom of the Netherlands is governed by the constitution of August 24, 1815 and its successors. Amsterdam has a population of 783,364 within city limits, an urban population...
was a major trading and shipping city. In order to protect their large accumulations of cash, people began to depositing their money with "cashiers". These cashiers held the money for a fee. Competition drove cashiers to offer additional services including paying out money to any person bearing a written order from a depositor to do so. They kept the note as proof of payment.
This idea spread to other countries including England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
, and the English colonies in North America, where land owners in Boston
Boston
Boston is the capital of and largest city in Massachusetts, and is one of the oldest cities in the United States. The largest city in New England, Boston is regarded as the unofficial "Capital of New England" for its economic and cultural impact on the entire New England region. The city proper had...
in 1681 mortgaged their land to cashiers which would provide an account against which they could write checks.
In the eighteenth century in England preprinted checks, serial numbers, and the very word "cheque
Cheque
A cheque is a document/instrument See the negotiable cow—itself a fictional story—for discussions of cheques written on unusual surfaces. that orders a payment of money from a bank account...
" appeared. By the late eighteenth century, the difficulty of clearing checks (sending them from one bank to another for collection) gave rise to the development of clearing houses
Bankers' clearing house
A bankers' clearing house is an organization that transfers money between member banks, originally to clear checks. For more than a century, this service has been expanded to include several other banking services now done electronically.- Predecessors :...
.
Features and access
All transactional accounts offer itemized lists of all financial transactions, either through a bank statementBank statement
An account statement or a bank statement is a summary of all financial transactions occurring over a given period of time on a deposit account, a credit card, or any other type of account offered by a financial institution....
or a passbook
Passbook
A passbook or bankbook is a paper book used to record bank transactions on a deposit account. Depending on the country or the financial institution, it can be of the dimensions of a chequebook or a passport....
. A transactional account allows the account holder to make or receive payments by:
- ATM cardATM cardAn ATM card is a card issued by a bank, credit union or building society that can be used at an ATM for deposits, withdrawals, account information, and other types of transactions, often through interbank networks.Some ATM cards can also be used:* at a branch, as identification for in-person...
s (withdraw cash at any Automated Teller MachineAutomated teller machineAn automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
) - debit cardDebit cardA debit card is a plastic card that provides the cardholder electronic access to his or her bank account/s at a financial institution...
(cashless direct payment at a store or merchant) - cash moneyMoneyMoney is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally in the past,...
(coinCoinA coin is a piece of hard material that is standardized in weight, is produced in large quantities in order to facilitate trade, and primarily can be used as a legal tender token for commerce in the designated country, region, or territory....
s and banknoteBanknoteA banknote is a kind of negotiable instrument, a promissory note made by a bank payable to the bearer on demand, used as money, and in many jurisdictions is legal tender. In addition to coins, banknotes make up the cash or bearer forms of all modern fiat money...
s) - chequeChequeA cheque is a document/instrument See the negotiable cow—itself a fictional story—for discussions of cheques written on unusual surfaces. that orders a payment of money from a bank account...
and money orderMoney orderA money order is a payment order for a pre-specified amount of money. Because it is required that the funds be prepaid for the amount shown on it, it is a more trusted method of payment than a cheque.-History of money orders:...
(paper instruction to pay) - direct debitDirect debitA direct debit or direct withdrawal is an instruction that a bank account holder gives to his or her bank to collect an amount directly from another account. It is similar to a direct deposit but initiated by the beneficiary...
(pre-authorized debit) - Electronic funds transferElectronic funds transferElectronic funds transfer is the electronic exchange or transfer of money from one account to another, either within a single financial institution or across multiple institutions, through computer-based systems....
s (transfer funds electronically to another account) - giroGiroA Giro or giro transfer is a payment transfer from one bank account to another bank account and instigated by the payer, not the payee...
(funds transfer, direct deposit) - standing orderStanding order (banking)A Standing Order is an instruction a bank account holder gives to their bank to pay a set amount at regular intervals to another account. The instruction is sometimes known as a banker's order....
(automatic funds transfer) - SWIFTSwiftThe swifts are a family, Apodidae, of highly aerial birds. They are superficially similar to swallows, but are actually not closely related to passerine species at all; swifts are in the separate order Apodiformes, which they share with hummingbirds...
: International account to account transfer. - Online bankingOnline bankingOnline banking allows customers to conduct financial transactions on a secure website operated by their retail or virtual bank, credit union or building society.-Features:...
(transfer funds directly to another person via internet banking facility)
Country specific
- In the United KingdomUnited KingdomThe United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, BACSBACSBacs Payment Schemes Limited is a United Kingdom scheme for the electronic processing of financial transactions. BACS direct debits and BACS direct credits are made using the BACS system...
offers giros that clear in a matter of days while CHAPSCHAPSThe Clearing House Automated Payment System or CHAPS is a British company established in London in 1984, which offers same-day sterling fund transfers...
is done on the same day. - CanadaCanadaCanada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
has an Email Money TransferEmail Money TransferInterac e-Transfer is a funds transfer service between personal and business accounts at participating Canadian financial institutions...
service - The United StatesUnited StatesThe United States of America is a federal constitutional republic comprising fifty states and a federal district...
offers e-checks. - In IndiaIndiaIndia , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
, NEFT and RTGSRTGSRTGS may refer to:*Real Time Gross Settlement*Royal Thai General System of Transcription...
services are available to
Branch networks
This refers to the practice of maintaining physical locations where customers can receive a wide array of banking and financial services, such locations are described as branches. They may provide access to a combination of cash machines, telephone bankingTelephone banking
Telephone banking is a service provided by a financial institution, which allows its customers to perform transactions over the telephone.Most telephone banking services use an automated phone answering system with phone keypad response or voice recognition capability...
, counter services and financial advice.
Overdrafts
In North America, overdraft protection is an optional feature of a chequing account. An account holder may either apply for a permanent one, or the financial institution may, at its sole discretion, provide a temporary overdraft on an ad-hoc basis.Interest
Formerly, in the United StatesUnited States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, Regulation Q
Regulation Q
Regulation Q is Title 12, part 217 of the United States Code of Federal Regulations. It prohibits banks from paying interest on demand deposits in accordance with Section 11 of the Glass–Steagall Act ....
(12 CFR 217) and the Banking Acts of 1933 and 1935 (12 USC 371a) prohibited a member of the Federal Reserve system from paying interest on chequing accounts. Historically, this restriction was frequently circumvented by either creating an account type such as a Negotiable Order of Withdrawal account
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....
(NOW account) which is legally not a chequing account or by offering interest paying chequing through a bank which is not a member of the Federal Reserve system.
The Dodd-Frank Wall Street Reform and Consumer Protection Act, however, passed by Congress and signed into law by President Obama on July 21, 2010, repealed the statutes that prohibit interest-bearing transactional accounts, effectively repealing Regulation Q (Pub. L. 111-203, Section 627). The repeal took effect on July 21, 2011. Since that date, financial institutions have been permitted, but not required, to offer interest-bearing transactional accounts.
High-yield checking accounts
High-interest NOW accounts have become prevalent throughout the industry. They pay a higher interest rate than typical NOW accounts and frequently function as loss-leaders to drive relationship banking.In 2003, banks and credit unions began to establish maximum balance accounts, which pay a premium rate up to a specified cap and a lower rate on balances above the cap. This counter-traditional trend (banks had typically established minimum account balances rather than maximum account balances) developed as a way to allow financial institutions to attract multiple customer relationships while limiting the interest expense associated with each account.
The first maximum balance, high-interest chequing account was offered in 2003 by a small community bank in New Mexico, Pioneer Bank. In 2004 and 2005, several community banks in West Texas adopted the idea, and a 3rd party vendor, BancVue
BancVue
BancVue is a wholesale financial services company headquartered in Austin, Texas. BancVue sells technology and marketing products to credit unions and small regional banks. One of BancVue's products is the "Kasasa" checking account offered by BancVue's clients, small banks and credit unions. In...
, combined the maximum-balance concept with the idea of a higher yield for customers who adopt specific cost-savings behaviors, as a "Reward" Checking account.
Other imitators rapidly followed. By 2010, over 1.5 million REWARDChecking(r) accounts had been opened at BancVue's clients alone.
The repeal of Regulation Q, which previously prohibited the payment of interest on standard transactional accounts, took effect too recently for it to have shown a major impact on banking practices. It is likely, however, that as time progresses the popularity of these alternative "checking" accounts will decline as clients opt for the less restrictive rules governing standard transactional accounts.
Internet banking
Internet or Online banking describes the use of a bank's secure website to view balances and statements, perform transactions and payments, and various other facilities. This can be very useful, especially for banking outside bank hours and banking from anywhere where internet access is available. Since the internet revolution most retail bankingRetail banking
Retail banking is banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and transactional accounts, mortgages, personal loans, debit cards, credit cards, and so forth.-Types of...
institutions offer access to current accounts via online banking.
Telephone banking
Telephone banking is the term applied to specific provision of banking services over the telephoneTelephone
The telephone , colloquially referred to as a phone, is a telecommunications device that transmits and receives sounds, usually the human voice. Telephones are a point-to-point communication system whose most basic function is to allow two people separated by large distances to talk to each other...
. In many cases such calls are to a call centre
Call centre
A call centre or call center is a centralised office used for the purpose of receiving and transmitting a large volume of requests by telephone. A call centre is operated by a company to administer incoming product support or information inquiries from consumers. Outgoing calls for telemarketing,...
or automated service, although some institutions continue to answer such calls in their branches. Often call centre opening times are considerably longer than branches, and some firms provide these services on a 24 hour basis.
Stores and merchants providing debit card access
Overdrafts
An overdraft occurs when withdrawals from a bank account exceed the available balance. This gives the account a negative balance and in effect means the account provider is providing credit. If there is a prior agreement with the account provider for an overdraft facility, and the amount overdrawn is within this authorised overdraft, then interest is normally charged at the agreed rate. If the balance exceeds the agreed facility then fees may be charged and a higher interest rate might apply.Cost
The policy of charging a fee for doing financial transactionFinancial transaction
A financial transaction is an event or condition under the contract between a buyer and a seller to exchange an asset for payment. It involves a change in the status of the finances of two or more businesses or individuals.-History:...
s depends on a variety of factors, including the country and its overall interest rates for lending and for saving, as well as the size of the financial institution and the number of channels of access it offers. This is why operating few or no branches
Virtual bank
A direct bank is a bank without any branch network. It offers its financial services by:* Telephone banking* Online banking* Automated teller machines * Mail banking* Mobile banking...
can afford to offer low-cost or free banking, and why, in some countries, transaction fees do not exist, but extremely high lending rates are the normal.
Financial transaction fees may be charged either per item or for a flat rate
Flat rate
A flat fee, also referred to as a flat rate or a linear rate, refers to a pricing structure that charges a single fixed fee for a service, regardless of usage. Rarely, it may refer to a rate that does not vary with usage or time of use...
covering a certain number of transactions. Often, youth
Youth
Youth is the time of life between childhood and adulthood . Definitions of the specific age range that constitutes youth vary. An individual's actual maturity may not correspond to their chronological age, as immature individuals could exist at all ages.-Usage:Around the world, the terms "youth",...
s, student
Student
A student is a learner, or someone who attends an educational institution. In some nations, the English term is reserved for those who attend university, while a schoolchild under the age of eighteen is called a pupil in English...
s, senior citizen
Senior citizen
Senior citizen is a common polite designation for an elderly person in both UK and US English, and it implies or means that the person is retired. This in turn implies or in fact means that the person is over the retirement age, which varies according to country. Synonyms include pensioner in UK...
s or high-valued customers do not pay fees for basic financial transactions. Some will offer free transactions for maintaining a very high average balance in their account. Other service charges are applicable for overdraft
Overdraft
An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero. In this situation the account is said to be "overdrawn". If there is a prior agreement with the account provider for an overdraft, and the amount overdrawn is within the authorized overdraft...
, non-sufficient funds
Non-sufficient funds
Non-sufficient funds is a term used in the banking industry to indicate that a demand for payment cannot be honored because insufficient funds are available in the account on which the instrument was drawn. In simplified terms, a cheque has been presented for clearance, but the amount written on...
, the use of an external interbank network
Interbank network
An interbank network, also known as an ATM consortium or ATM network, is a computer network that connects the ATMs of different banks and permits these ATMs to interact with the ATM cards of non-native banks....
, etc. In countries where there are no service charges for transaction fees, there are, on the other hand, other recurring service charges such as a debit card
Debit card
A debit card is a plastic card that provides the cardholder electronic access to his or her bank account/s at a financial institution...
annual fee.
Interest
Unlike savings accounts, for which the primary reason for depositing money is to generate interest, the main function of a transactional account is transactional. Therefore, most providers either pay no interest or pay a low level of interest on credit balances.Current accounts
A current account is the form of transactional account found in the United KingdomUnited Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
and other countries with a UK banking heritage; a current account offers various flexible payment methods to allow customers to distribute money directly to others. Most current accounts come with a cheque book and offer the facility to arrange standing orders
Standing order (banking)
A Standing Order is an instruction a bank account holder gives to their bank to pay a set amount at regular intervals to another account. The instruction is sometimes known as a banker's order....
, direct debit
Direct debit
A direct debit or direct withdrawal is an instruction that a bank account holder gives to his or her bank to collect an amount directly from another account. It is similar to a direct deposit but initiated by the beneficiary...
s and payment via a debit card
Debit card
A debit card is a plastic card that provides the cardholder electronic access to his or her bank account/s at a financial institution...
. Current accounts may also allow borrowing via an overdraft
Overdraft
An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero. In this situation the account is said to be "overdrawn". If there is a prior agreement with the account provider for an overdraft, and the amount overdrawn is within the authorized overdraft...
facility.
Lending
Current accounts have two different ways in which money can be lent: overdraft and offset mortgage.Overdraft
In the UK, virtually all current accounts offer a pre-agreed overdraftOverdraft
An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero. In this situation the account is said to be "overdrawn". If there is a prior agreement with the account provider for an overdraft, and the amount overdrawn is within the authorized overdraft...
facility the size of which is based upon affordability and credit history. This overdraft facility can be used at any time without consulting the bank and can be maintained indefinitely (subject to ad-hoc reviews). Although an overdraft facility may be authorised, technically the money is repayable on demand by the bank. In reality this is a rare occurrence as the overdrafts are profitable for the bank and expensive for the customer.
Offset mortgage
An offset mortgage was a type of mortgage common in the United Kingdom used for the purchase of domestic property, the key principle is the reduction of interest charged by "offsetting" a credit balance against the mortgage debt. This can be achieved via one of two methods either lenders provide a single account for all transactions (often referred to as a current account mortgage) or they make multiple accounts available which allow the borrowers to notionally split their money according to purpose whilst all accounts are offset each day against the mortgage debt.Interest
In the UK some online banks offer rates as high as many savings accounts along with free banking (no charges for transactions) as institutions which offer centralised servicesVirtual bank
A direct bank is a bank without any branch network. It offers its financial services by:* Telephone banking* Online banking* Automated teller machines * Mail banking* Mobile banking...
(telephone, internet or postal based) tend to pay higher levels of interest. The same holds true for banks within the EURO currency zone.
See also
Transaction related- Collection itemCollection itemA collection item is an item presented to a bank for deposit that the bank will not, under its procedures, provisionally credit to the depositor's account or which the bank cannot provisionally credit to a depositor's account. Collection items do not create float...
- Error accountError accountAn error account is a type of account used for storing compensation for errors in trading, a transaction that is not posted in a timely manner because of inconsistencies, such as an incorrect account or routing numbers to the wrong name on the account, producing a claim that needs to be resolved as...
a necessity for auditing transaction accounts - Demand draftDemand draftA demand draft, also known as a remotely created check, a tele-check, or check by phone, check by fax or echeck, is a check created by a merchant with a buyer's checking account number on it, but without the buyer's original signature....
- Transaction depositTransaction depositIn 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...
Account type related
- Current account mortgage
- Negotiable Order of Withdrawal accountNegotiable Order of Withdrawal accountIn the United States, a Negotiable Order of Withdrawal account is a deposit account that pays interest, on which checks may be written....
- Personal accountPersonal accountA personal account is an account for use by an individual for that person's own needs. It is a relative term to differentiate them from those accounts for corporate or business use...
- Savings accountSavings accountSavings accounts are accounts maintained by retail financial institutions that pay interest but cannot be used directly as money . These accounts let customers set aside a portion of their liquid assets while earning a monetary return...