A deposit (with a bank or financial institution) that is used to make payments to other parties. In other words, it is a deposit that entails assignment of funds, without prior conditions or restrictions.
Transferable deposits include all deposits that are transferable (exchangeable) on demand at par, and as such are not subject to restrictions or penalties. Transferable deposits are freely “transferable” by means of money order (cheque or giro-order, etc.) from the accountholder to other parties.
