Interdistrict Settlement Account

AAA

DEFINITION of 'Interdistrict Settlement Account'

A clearing account that the Federal Reserve maintains to facilitate fund transfers between the 12 Federal Reserve banks located throughout the country. The account is domiciled in Washington D.C. This account is reserved solely for the use of the 12 member banks.

INVESTOPEDIA EXPLAINS 'Interdistrict Settlement Account'

The settlement account for each separate bank is either debited for each transaction with a due from entry or credited with a due to entry. These entries are settled on a net basis each day in order to keep fund transfers between member banks to a minimum.

RELATED TERMS
  1. Federal Reserve Bank

    The central bank of the United States and the most powerful financial ...
  2. Transfer Agent

    A trust company, bank or similar financial institution assigned ...
  3. Settlement Statement

    A statement that summarizes all the fees and charges that both ...
  4. Account Settlement

    The summary of business operations and performance for a fiscal ...
  5. Account

    1. An arrangement by which an organization accepts a customer's ...
  6. Bank

    A financial institution licensed as a receiver of deposits. There ...
Related Articles
  1. Inside National Payment Systems
    Economics

    Inside National Payment Systems

  2. What Is The World Bank?
    Insurance

    What Is The World Bank?

  3. The Ins And Outs Of Bank Fees
    Options & Futures

    The Ins And Outs Of Bank Fees

  4. What Are Central Banks?
    Personal Finance

    What Are Central Banks?

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center