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A checking account is called a "demand deposit" because it is available for transfer to another individual or company by writing a check or draft.

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14y ago

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Is the amount of money in your checking account called your allowance?

No, the proper banking term is balance for an amount in a checking account.


How can you add money to a term deposit?

To add money to a term deposit, you can make a deposit at the bank or financial institution where the term deposit is held. You can do this by transferring funds from your savings or checking account into the term deposit account.


What is the term used for a negative checking account balance?

"Overdrawn" is the common term used to describe a negative checking account balance.


What technical word starts with the letter O?

Overdrawn is a technical banking term. It means that you do not have enough money in your checking account to cover your check.


Where should my paycheck be deposited, into my checking account or savings account?

Your paycheck should typically be deposited into your checking account, as it is designed for everyday expenses and easy access to your money. Your savings account is better suited for long-term savings goals and should be used to build up your savings over time.


Would idle cash in a bank checking account classified as a short term investment?

No, idle cash in a bank checking account is not considered a short-term investment. It is simply cash that is not being actively used or invested. Short-term investments typically refer to assets that are expected to be converted into cash within a year, such as Treasury bills or money market funds.


Is not a banking term of fee that could result in additional charge on your checking account?

Yes, a banking term that could result in an additional charge on your checking account is an "overdraft fee." This fee occurs when you withdraw more money than your available balance, leading the bank to cover the shortfall. Other related fees include insufficient funds fees and monthly maintenance fees, which can also impact your account balance.


What is the term for a type of account that earns interest as money is deposited?

money


What term means to take money out of an account?

Withdraw


Why is a checking account sometimes called a demand deposit?

No. A Demand Deposit or Term Deposit or a Fixed Deposit (FD) Account is one in which the customer deposits a big sum of money (Usually a few thousands and upwards. There is actually no limit to the amount of money you can deposit in a FD) for a fixed duration of time (Atleast 3 months or higher). Since you agree to keep the money deposited with the bank for a fixed/agreed upon duration, the bank gives you a very good interest as payment for keeping the deposit Checking Accounts are also called as Current Accounts. A checking account is one in which customers keep some money and use it for their day to day transactions. The money in this account does not earn any interest and is available for usage to the customer at all times.


What is the term for the amount of money you have in your account?

The amount of money available in an account is usually referred to as the "balance" of the account. The cash balance may be positive or negative.


Why does a savings account make a better investment than a checking account?

Savings accounts earn interest.