Chequing Account

Definition

• A type of bank account used to store funds that need to be accessed on a day-to-day basis. Money kept in a chequing account is extremely liquid and transactions are not as limited as those made with a savings account. Chequing accounts rarely offer interest, and if they do, the rates are not high. Also known as a "checking account," "demand account," "deposit account," or "transactional account."

Synonyms
demand account, transactional account, deposit account

Alternate Spellings
checking account

Related Terms and Acronyms

• Call Deposit Account — Definition,
  • A bank account that combines some features from both savings and checking accounts.
• Cheque (CK) — Acronym,
  • A written order for payment of a certain amount of money.
  ➥ Bank account transaction code.
• Clearing and Settlement (C&S) — Acronym,
  • The process whereby banks collect or pay out for items drawn on or paid into accounts in their institution. This process enables banks to accept each other's cheques and bank drafts for deposit. The Canadian Payments Association operates Canada's clearing system.
• Closed-account Fee — Definition,
  • A fee charged for shutting down an account. Sometimes charged if the account is closed before a certain time period has passed.
• Combination Account — Definition,
  • An account that is part savings and part chequing. You may write cheques and you will be paid interest if you have enough money in the account.
• Debit — Definition,
  • Another name for withdrawal of funds from your account.
• Express Account — Definition,
  • A low-fee or no-free chequing account, limited to ATM, telephone, and online transactions. Express account customers are charged fees when using bank teller services.
• Joint Account (J/A) — Acronym, Important,
  • A bank account owned by two or more persons who share equally in the rights and liabilities of the account.
• Online Banking (OLB) — Acronym, Important,
  • Access by personal computer or terminal to bank information, accounts and certain transactions via the financial institution's web site on the Internet. Also known as Internet banking.
• Overdraft Minimum Amount — Definition,
  • Minimum amount that will be transferred to the accountholder's account if a potential non-sufficient funds (NSF) situation occurs.
• Personal Savings — Definition,
  • The difference between personal disposable income and personal consumption spending.
  • Put own money away.
• Rests — Definition,
  • The periodical balancing of an account for the purpose of converting interest into principal, and charging the party liable thereon with compound interest.
• Retail Banking — Definition,
  • Banking services offered to individual customers such as savings accounts, personal loans, cheque cashing, and RRSPs.
• Savings Account — Definition,
  • A financial account that pays interest with low risk.
• Tax Instalment Payment Plan (TIPP) — Acronym, Canada,
  • A popular property tax payment plan that allows you to pay your taxes monthly without any penalties or additional charges.
• Time Deposit — Definition,
  • A type of deposit account with a stated maturity at which time the account reverts to another type of account or is "rolled over" for another fixed period of time.
• Withdrawal (WD) — Acronym,
  • Taking money out of a bank account or financial instrument.
  ➥ Bank account transaction code.