Bank Accounts

In deposit terminology, the term bank account refers to a financial arrangement between a depositor or debt holder and a bank.

Bank Accounts are usually made up of various types of deposit accounts and loan accounts.

Bank accounts may have a positive, or credit balance, where the financial institution owes money to the customer; or a negative, or debit balance, where the customer owes the financial institution money.

Broadly, accounts opened with the purpose of holding credit balances are referred to as deposit accounts; whilst accounts opened with the purpose of holding debit balances are referred to as loan accounts.

Some accounts can switch between credit and debit balances.

Types of Bank Accounts

• Deposit

1. Transactional (Checking)

1. Current

2. Personal

3. Savings Bank account (India)

4. Transaction deposit (USA)

• Savings

1. Individual Savings Account (ISA) (UK)

2. Time deposit (Bond) / Fixed deposit

1. Certificate of deposit (USA)

3. Tax-exempt special savings account (TESSA) (UK)

4. Tax-Free Savings Account (Canada)

5. Money-Market

• Other Types

1. Loan

2. Joint

3. Low-cost

4. Numbered

5. Negotiable Order of Withdrawal (NOW) (USA)