Editing Transaction account (section)

{{Short description|Bank holding that clients can access on demand}}
{{Banking |accs/cards}}
[[File:Bank account (UML class diagram).svg|thumb|UML class diagram depicting a customer with accounts]]
A '''transaction account''' (also called a '''checking account''', '''cheque account''', '''chequing account''', '''current account''', '''[[demand deposit]] account''', or '''share account''' at [[credit union]]s) is a deposit account or [[bank account]] held at a [[bank]] or other financial institution. It is available to the account owner "on demand" and is available for frequent and immediate access by the account owner or to others as the account owner may direct. Access may be in a variety of ways, such as cash withdrawals, use of [[debit card]]s, [[cheque]]s and electronic transfer. In economic terms, the funds held in a transaction account are regarded as [[liquidity|liquid funds]]. In [[accounting]] terms, they are considered as [[cash and cash equivalents|cash]].

Transaction accounts are known by a variety of descriptions, including a current account (British English), chequing account or checking account when held by a [[bank]], share draft account when held by a [[credit union]] in [[North America]].<ref>U.S. and Canadian spelling, respectively; see further at [[Cheque#Spelling and etymology|Etymology and spelling]].</ref> In the [[Commonwealth of Nations membership criteria|Commonwealth of Nations]], [[United Kingdom]], [[Hong Kong]], [[India]], [[Ireland]], [[Australia]], [[New Zealand]], [[Singapore]], [[Malaysia]], [[South Africa]] and a number of other countries they are commonly called current or, before the demise of cheques, cheque accounts. Because money is available on demand they are also sometimes known as demand accounts or demand deposit accounts. In the United States, [[Negotiable Order of Withdrawal account|NOW accounts]] operate as transaction accounts.

Transaction accounts are operated by both businesses and personal users. Depending on the country and local [[demand|demand economics]] earning from interest rates varies.<ref name=MSMHighInterest>{{cite web |url= http://www.moneysupermarket.com/current-accounts/high-interest-bank-accounts/ |title= High interest current accounts |publisher= Money Supermarket |website= moneysupermarket.com |access-date= 12 November 2016 |archive-date= 12 November 2016 |archive-url= https://web.archive.org/web/20161112212341/http://www.moneysupermarket.com/current-accounts/high-interest-bank-accounts/ |url-status= dead }}</ref> Again depending on the country<ref name=BBC35482233>{{cite web |url=https://www.bbc.co.uk/news/business-35482233|title=Do other countries offer better banking than the UK? |publisher=BBC |website=bbc.co.uk |date=24 May 2012 |access-date=12 November 2016}}</ref> the financial institution that maintains the account may charge the account holder maintenance or transaction fees or offer the service free to the holder and charge only if the holder uses an add-on service such as an [[overdraft]].<ref name=BBC18186363>{{cite web |url=https://www.bbc.co.uk/news/business-18186363 |title=Free banking a dangerous myth, says Bank official |publisher=BBC |website=bbc.co.uk |date=24 May 2012 |access-date=12 November 2016}}</ref>