Checkable Deposits

It is an asset, fiat money where the depositor can withdraw funds from the account at any time.

Savings, time deposits and many other types of bank accounts the UK can serve as a store of the value function and some of these types can be converted into checkable.

Such banks allow the owners to write checks to the third parties as the non-interest-bearing or saving accounts offering ways to withdraw the payable on demand. 

The depositors can forgo some interest to access and conduct transactions from their bank liquid assets.

Such accounts can be maintained by loan associations, credit unions, and mutual savings banks that are generally accepted as payments in exchange for goods or services.

The accounts are also termed transaction deposits that can make it possible for the customer to transfer funds easily and quickly. 

The commercial banks were first to offer checkable deposits and they offered it for several decades but recently, many other institutions started issuing their vaults which were given different names like -

demand, negotiable order of withdrawal (NOW), or automatic transfer services, where the functions remained the same.  

• The demand deposits are standard checking accounts maintained by the commercial banks that may pay no interest on the balances and can be withdrawn on demand. 

• NOW was offered by the mutual savings bank with traditional provisions. 

• The automatic transfer services provide movement of funds between the interest-paying saving and a checking account. 

• he shares draft refers to the accounts issued by the credit unions.

The cost of maintaining the deposits involves the cost of processing, storing canceling checks, preparing/sending out the monthly financial statement, advertising/marketing, and maintaining impressive buildings and branches.