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 ?
Reserve requirements currently are assessed on the depository institution's net transaction accounts (mostly checking accounts).
Among such products, general purpose reloadable (GPR) prepaid cards may be able to address the issues more effectively than alternative checking accounts offered by depository institutions or transaction accounts offered by nondepository institutions.
According to the firm, Deposit Reclassification, a retail sweep program, is a Federal Reserve Board acknowledged practice that reduces reserve requirements by reclassifying transaction accounts as non-transaction accounts, which are not subject to reserve requirements.
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.
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.
The annual indexing of the low reserve tranche and the reserve requirement exemption amount is based on growth in net transaction accounts and total reservable liabilities, respectively, at all depository institutions between June 30, 2004, and June 30, 2005.
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.