Account (in banking) - Financial definition
Concise definition of the term account
In banking, an account can be defined as a continuous register of incoming and outgoing financial movements resulting in a deposit or debt an individual or legal entity has with a financial institution.
Comprehensive definition of the term account
In the broader context of banking and finance, an account serves as a fundamental tool for managing and documenting a variety of financial transactions and balances for both individuals and businesses. Examples of such accounts include savings accounts, which accrue interest over time, and checking accounts, which facilitate everyday financial transactions such as deposits, withdrawals, and payments.
Financial institutions offer different types of accounts tailored to specific needs, such as brokerage accounts for trading securities or retirement accounts for long-term savings. Market practices for account management typically involve regular statements, online banking services, and various security measures to protect account holders' funds and personal information.