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Transaction Account

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Transaction account
A checking or similar account from which transfers can be made to third parties. Demand-deposit accounts, negotiable order of withdrawal NOW accounts, automatic transfer service (ATS) accounts, and credit union share draft accounts are examples of transaction accounts at banks and other depository institutions.

Transaction Account
A bank account from which payments can be made to a third party. Perhaps the most common type of transaction account is a checking account where one can write a check or use a debit card to deduct an amount from the account and give it to a third party without having to go personally to the bank to make a withdrawal. See also: NOW Account, Demand Account.


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based credit union had a penetration rate of 15% on transaction accounts and had five branches that were particularly under performing in this area.
There are usually a few catches, for example, it can be a little harder to gain access to cash in a savings account than it would be in a normal transaction account.
Participants will be charged a 75-basis-point fee to protect their new debt issues, and a 10-basis-point surcharge will be added to a participating institution's current insurance assessment in order to fully cover the non-interest-bearing deposit transaction accounts.
 
 
 
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