Bank Account

Bank Account Meaning:
In deposit terminology, the term bank account refers to a financial arrangement between a depositor or debt holder and a bank. Bank Accounts are usually made up of various types of deposit accounts and loan accounts.

Bank Account Example:
For example, a bank account where a credit is maintained is called a deposit account, while an account to which a customer pays back a debt with the bank is called a loan account. The most familiar type of deposit account is a checking or savings bank account, while a loan account is best represented by a mortgage held by the bank. In addition to mortgages, car loans, business loans and other types of loans, others include Negotiable Order of Withdrawal or NOW bank accounts. This pays depositors interest on credit balances, with the interest rate paid being contingent upon the amount of money deposited by the account holder.