A checkable deposit is a deposit that can be withdrawn from by writing a check. This is in contrast to savings deposits, which cannot be withdrawn from using a check. In order to open a checkable deposit account, you will likely need to meet a minimum balance requirement and may be charged a monthly maintenance fee. What is the meaning of term deposit? A term deposit is a type of savings account where the money is deposited for a set period of time, usually between one and five years. The interest rate on a term deposit is usually higher than a regular savings account, and the money cannot be withdrawn until the end of the term. Is a checking account a liability to a bank? A checking account is a type of bank account where money can be deposited and withdrawn on a regular basis. The account holder is typically issued a checkbook and debit card, and can write checks against the funds in the account. Checking accounts are a common type of bank account, and are typically used for day-to-day expenses such as rent, utilities, groceries, and so on.
While checking accounts are a common type of bank account, they are not necessarily a liability to the bank. This is because the money in a checking account is typically considered to be "on deposit" with the bank, which means that the bank has the right to use the funds for its own purposes. However, the bank is also obligated to pay the account holder any funds that are requested, up to the available balance in the account. So, while the bank may technically be able to use the funds in a checking account for its own purposes, it is also obligated to return the funds upon request. Why are deposits liabilities? Deposits are liabilities because the bank owes the customer the money that has been deposited. The customer can withdraw the money at any time and, as such, the bank must have the funds available to meet those demands. Which of the following is not a checkable deposits? The answer is "a." A is not a checkable deposit because it is not a negotiable instrument.
Why is it called a checking account?
A checking account is a type of bank account where the account holder can write checks to pay for goods and services. The account holder can also use a debit card linked to the account to make purchases. Checking accounts are usually used for day-to-day expenses, as opposed to savings accounts, which are meant for long-term savings.