A transactional account (North America: checking account or chequing account, United
Kingdom and some other countries: current account or cheque 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. Because money is available on demand these accounts
are also referred to as demand accounts or demand deposit accounts.
Transactional
Account or Demand Deposit Account (DDA) or Current Account is
primarily meant for businessmen, firms, companies, public enterprises etc. that
have numerous daily banking transactions. Current Accounts are meant neither
for the purpose of earning interest nor for the purpose of savings but only for
convenience of the business, hence they are non-interest bearing accounts. In
a Current Account, a customer can deposit any amount of money any number of times
and permit unlimited number of withdrawals, subject to availability of funds. |
