Transaction Deposit

AAA

DEFINITION of 'Transaction Deposit'

A banking deposit that has immediate and full liquidity, with no delays or waiting periods. Transaction deposits can be transferred into other cash instruments, have electronic payments authorized against them, or otherwise be transacted by the financial institution solely at the request of the account holder.

INVESTOPEDIA EXPLAINS 'Transaction Deposit'

Transaction deposits must be held in reserve by the bank at all times; they stand in contrast to time deposits and even deposits into a savings account, which may have monthly limitations on the number of transactions or transfers allowed.

Making a deposit into a conventional checking account will be considered a transaction deposit, as the account holder is allowed to withdraw the amount at any time.

RELATED TERMS
  1. Nonpersonal Time Deposit

    Time deposit accounts held by corporate bank customers that pay ...
  2. Deferred Availability

    A delay in the availability of funds to the holder of a commercial ...
  3. Time Deposit

    A savings account or certificate of deposit (CD) held for a fixed-term, ...
  4. Savings Account

    A deposit account held at a bank or other financial institution ...
  5. Electronic Check

    A form of payment made via the internet that is designed to perform ...
  6. Fedwire

    A real-time gross settlement system (RTGS) of central bank money ...
Related Articles
  1. Inside National Payment Systems
    Economics

    Inside National Payment Systems

  2. Money Market Mutual Funds: A Better ...
    Mutual Funds & ETFs

    Money Market Mutual Funds: A Better ...

  3. Understanding The Escrow Process
    Options & Futures

    Understanding The Escrow Process

  4. Demystification Of Bank Accounts
    Options & Futures

    Demystification Of Bank Accounts

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. 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. ...
  3. Due Diligence - DD

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

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. 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 ...
  6. 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 ...
Trading Center