Bank account

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A bank account is a financial (pf) account between a bank customer and a financial institution. A bank account can be a deposit account, a credit card, or any other type of account offered by a financial institution. The financial transactions which have occurred within a given period of time on a bank account are reported to the customer on a bank statement and the balance of the account at any point in time is the financial position of the customer with the institution. A fund that a customer has entrusted to a bank and from which the customer can make withdrawals.

Account types and the rate of interest given[edit]

Bank accounts may have a positive, or credit balance, where the bank owes money to the customer; or a negative, or debit balance, where the customer owes the bank money.[1]

Broadly, accounts opened with the purpose of holding credit balances are referred to as deposit accounts; whilst accounts opened with the purpose of holding debit balances are referred to as loan accounts. Some accounts can switch between credit and debit balances.

Some accounts are categorized by the function rather than nature of the balance they hold, such as savings account.

All banks have their own names for the various accounts which they open for customers.

Types of accounts[edit]

Canada[edit]

The Government of Canada maintains a database of the fees and features of bank account packages offered by various financial institutions operating in Canada. The information is periodically incorporated in comparative tables and published in booklet form. The tables are also published in PDF form on the website of the Financial Consumer Agency of Canada. The database also feeds into an interactive online tool,[2] that allows consumers to compare various bank-account packages online.

Notes and references[edit]

  1. ^ "What is debit balance? definition and meaning". Businessdictionary.com. Retrieved 2013-12-17. 
  2. ^ "For consumers". Fcac-acfc.gc.ca. Retrieved 2013-12-17. 

See also[edit]