Dictionary of Banking Terms: transaction account
transaction account
- deposit account from which the account holder is permitted to make withdrawals or transfers by negotiable or transferable instrument, payment order of withdrawal, telephone transfer, or similar means to make transfers to third parties.
- demand deposit, NOW account, super now account, and other accounts accessible by negotiable instrument, and subject to reserve requirements, as defined by the Monetary Control Act of 1980, with a Federal Reserve Bank or correspondent.
