Chapter 2: What is a Bank Account?

Table of Content

Definition: 

• A bank account is an arrangement between an individual or entity and a bank, where funds are deposited and held securely, allowing for transactions, savings, and easy access to money.

Types: 

• Bank accounts come in various forms, including savings accounts for storing money and earning interest, current accounts for everyday transactions, and specialized accounts like fixed deposits.

Functions: 

• Bank accounts offer essential financial services such as depositing, withdrawing, receiving and making payments, managing personal finances, and often earning interest on the deposited balance.