Transaction deposit

2022-11-23T17:25:12Z

2607:FEA8:C260:200:4141:AEB3:A9E8:8A60:

In the [[United States]], '''transaction deposit''' is a term used by the [[Federal Reserve]] for [[checkable deposit]]s and other accounts that can be used directly as cash without withdrawal limits or restrictions. Such [[demand deposit]]s are subject to [[reserve requirement]]s imposed by the central bank that require the bank to keep [[bank reserves|reserves]] at the central bank. This is in contrast to "[[time deposit]]s" ({{aka}} term deposits), which are not subject to reserve requirements.

==Regulations==
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 by [[telephone]] 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 (finance)|check]], [[check (finance)|draft]], [[debit card]], or similar order payable directly to third parties) are [[savings deposit]]s, not transaction accounts.

==See also==
* [[Checkable deposit]]s
* [[Demand deposit]]s
* [[Money supply]]
* [[Time deposit]]s

==External links==
*[https://web.archive.org/web/20041019031735/http://woodrow.mpls.frb.fed.us/info/policy/res-req.cfm Federal Reserve Bank of Minneapolis - About the Fed - Reserve Requirements of Depository Institutions]

{{DEFAULTSORT:Transaction Deposit}}
[[Category:Economy of the United States]]
[[Category:Banking]]

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Transaction deposit