An account in which money and/ or monetary assets are held with a central bank, central securities depository, central counterparty or any other institution assuming the role of a settlement agent. A settlement account is used to settle transactions between market participants or members of a commercial settlement system.

It is a transactional bank account that allows as quick access to available cash balances. It also provides an efficient means for fund accumulation and safekeeping, as well as certain time and cost-effectiveness, as an entity can easily manage its financial activities and other dealings with market participants.