A deposit account that does allow funds to be withdrawn or transferred to third parties using some means of instruction (such as checks, telephone transfers, etc). Transaction accounts ensure the availability of funds at all times without restriction. Also referred to as checkable or checking accounts (current accounts), transaction accounts are highly liquid and allow their holders to safely transfer funds, with checks serving as receipts for payments made. Checking accounts are generally classified as demand accounts (usually earn no return) and negotiable order of withdrawal (NOW) accounts (which can earn interest payment).

Transaction accounts are also known as transactional deposit accounts.