In the United States

United States

The United States of America is a federal constitutional republic comprising fifty states and a federal district...

, transactions deposit is a term used by the Federal Reserve for checkable deposits and other accounts that can be used directly as cash without withdrawal limits or restrictions. They are the only bank deposits that require the bank to keep reserves

Bank reserves

Bank reserves are banks' holdings of deposits in accounts with their central bank , plus currency that is physically held in the bank's vault . The central banks of some nations set minimum reserve requirements...

 at the central bank. This is in contrast to "time deposit

Time deposit

A time deposit is a money deposit at a banking institution that cannot be withdrawn for a certain "term" or period of time...

s" (aka term deposits).

Regulatory

Transaction accounts include all deposits against which the account holder is permitted to make withdrawals by negotiable or transferable instruments, payment orders of withdrawal, or telephone

Telephone

The telephone , colloquially referred to as a phone, is a telecommunications device that transmits and receives sounds, usually the human voice. Telephones are a point-to-point communication system whose most basic function is to allow two people separated by large distances to talk to each other...

 or preauthorized transfers for the purpose of making payments to third persons or others. However, accounts subject to the rules that permit no more than six preauthorized, automatic, or other transfers per month (of which no more than three may be by check, draft, debit card

Debit card

A debit card is a plastic card that provides the cardholder electronic access to his or her bank account/s at a financial institution...

, or similar order payable directly to third parties) are savings deposits, not transaction accounts.

External links

• Federal Reserve Bank of Minneapolis - About the Fed - Reserve Requirements of Depository Institutions