Bank Account - Account Types

Account Types

Bank accounts may have a positive, or credit balance, where the bank owes money to the customer; or a negative, or debit balance, where the customer owes the bank money.

Broadly, accounts opened with the purpose of holding credit balances are referred to as deposit accounts; whilst accounts opened with the purpose of holding debit balances are referred to as loan accounts. Some accounts can switch between credit and debit balances.

Some accounts are categorised by the function rather than nature of the balance they hold, such as savings accounts. hahahahahahahahhahahh

All banks have their own names for the various accounts which they open for customers.