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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.
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