The term "transaction account" is correct and usable in written English.
You can use it when referring to a type of bank account where funds are kept readily available for frequent and immediate access, and can be used to make payments and manage transactions. For example, "She has a transaction account and makes her payments by transferring funds from it."
The term "account" means a demand deposit account or other similar transaction account at a depository institution.
The arrangement, known as the Transaction Account Guarantee program, was created during the financial crisis to help shore up banks by increasing their deposit base.
Anticipation of the expiration of the Transaction Account Guarantee has led to flows out of large, interest-free bank deposits into t-bills.
The Transaction Account Guarantee program is financed through assessments on banks by the F.D.I.C., similar to the standard deposit insurance program.
The accounts, which are permitted to pay interest at no more than a 0.5percentt rate, are offered under a new federal venture called the Transaction Account Guarantee Program.
Managed through the Federal Deposit Insurance Corporation, the so-called Transaction Account Guarantee program provides unlimited federal deposit insurance to what are known as transaction accounts — basically noninterest-bearing accounts generally used by businesses for payroll, accounts payable and other immediate needs.
Mr. Bove added: "The bank also apparently opened 1.5 million false transaction accounts?
Ecocash in Zimbabwe and the basic transaction accounts, such as Mzansi accounts in South Africa.
Increased FDIC coverage (which temporarily increased the cap on insured deposits to $250,000 and created a program that gave unlimited coverage of transaction accounts to banks).
Any depository institution in which transaction accounts or nonpersonal time deposits are held shall be entitled to the same discount and borrowing privileges as member banks.
"I think most of them are going to take a look at the competitive landscape, and see if it would give them an advantage to offer interest on transaction accounts," said Bob Seiwert, a vice president of the American Bankers Association.
