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.
References in periodicals archive ?
Global Banking News-November 12, 2012--Australian banks incentivise daily transaction accounts to attract customers(C)2012 ENPublishing - http://www.
4 million in net transaction accounts will be exempt from reserve requirements.
Bank Windhoek recently increased the life cover for clients with EasySave, Vibe or Transaction accounts.
The Dodd-Frank Act subsection's title says it all: "Interest-Bearing Transaction Accounts Authorized.
Allowing the TAG program to expire in this environment could cause a number of community banks--already under stress--to experience deposit withdrawals from their large transaction accounts and would risk needless liquidity failures.
Under the TAGP, funds in non-interest bearing transaction accounts at Oxford Bank will be fully guaranteed by the FDIC through December 31, 2009.
The Federal Deposit Insurance Corporation announced a new program designed to strengthen confidence and encourage liquidity in the banking system by guaranteeing newly issued senior unsecured debt of banks, thrifts and certain holding companies, and by providing full coverage of non-interest-bearing deposit transaction accounts, regardless of dollar amount.
Reserve requirements currently are assessed on the depository institution's net transaction accounts (mostly checking accounts).
Unlimited deposit protection for transaction accounts was originally introduced to stabilize deposit bases as the banking system came under extreme stress during the financial crisis in late 2008.
The TAGP, created in 2008, enabled the FDIC to provide full guarantee of the entire amount of deposits held in non-interest bearing transaction accounts.
12 /PRNewswire-FirstCall/ -- First Niagara Financial Group announced today that First Niagara Bank is participating in the federal Transaction Account Guarantee Program (TAGP) that provides full insurance coverage through December 31, 2009 on certain non-interest-bearing transaction accounts.
These annual adjustments, known as the low reserve tranche adjustment and the reserve requirement exemption amount adjustment, are based on growth in net transaction accounts and total reservable liabilities, respectively, at all depository institutions between June 30, 2003, and June 30, 2004.