Types of bank accounts
The primary purpose of any company is commerce, which means making a profit. One of the most essential tools of any company, without which it would be incapable of performing any kind of commercial activity, is a bank account. No matter whether you are a private individual looking for opportunities to invest your funds and keep them safe, or a company looking for a corporate bank account, there are a number of different types of accounts, and it is essential to choose the one that meets your needs in the best possible way.
Confidus Solutions’ professional team of highly-qualified experts and banking specialists will provide you with full and detailed advice on different types of bank account. If you have any questions about bank accounts, or if you want to open a bank account now, please see our F.A.Q. section or contact our experts directly.
Types of accounts
Whenever we use the term 'bank account' to mean an account where we can deposit and/or withdraw money, we are generally talking about deposit accounts. 'Deposit account' is a general name for all accounts that can be used to easily deposit and/or withdraw money. However, there are several different types of deposit account, each with its own pros and cons and each serving a specific purpose.
If you are looking for a way to open a 'corporate bank account', we can offer you a wide variety of options, depending on your goals and intentions. Please read the information below carefully and contact us if you have any questions regarding any type of deposit account.
|Type of account||Available for corporate banking||Available for private banking|
|Type of account||Is a deposit account||Is a temporary account||Generates income|
A merchant account is a type of bank account that allows businesses to accept and process credit and debit card transactions. A merchant account is often necessary for certain kinds of business, especially those operating online. This kind of account is specifically used to identify the vendor as the owner of the purchase information sent to the bank and the recipient of the money from the transaction. Merchant accounts are provided for a specific vendor by an “acquiring bank”, under an agreement to settle payment card transactions.
A checking account is a deposit account opened at a bank that allows numerous withdrawals and unlimited deposits. Checking accounts are the most liquid accounts and can be easily accessed at any time using ATMs, cheques, online banking and credit or debit cards. Because of these characteristics, checking accounts are also known as demand or transaction accounts. Different types of checking accounts have been designed to meet the requirements of users, including student accounts, business accounts and joint accounts for households. Checking accounts generally do not offer any interest due to their liquidity.
An escrow account is a temporary deposit held by a third party, usually called an escrow agent, on behalf of two other parties. The temporary account operates until the transaction is complete and all conditions between both parties are settled. The money or other assets are debited from the escrow account when certain predetermined legal obligations are fulfilled or the escrow agent receives an instruction to release the assets. Escrow accounts are designed differently to regular accounts. While they can be used to hold securities, funds, money and other assets, these temporary deposit arrangements are most often used in real estate transactions.
An investment account is held at a financial facility such as a bank, brokerage house or sometimes even an insurance company. The main purpose of this kind of account is the preservation and growth of the capital, as well as fixed income gains through long-term deposits in the asset portfolio. While generally the word “investing” is a very broad definition, covering a range of proactive uses of assets — such as patents, trade marks, rare wines, gold coins, small businesses, real estate and antiques — investment accounts hold less tangible assets, such as cash, stocks, bonds and mutual funds.
A savings account is a deposit account opened at a bank or other financial institution. This type of account is interest bearing, which means that you earn a certain amount of interest by holding your cash funds in it. In comparison with other accounts, this type of account is flexible in terms of number of transactions and amount of funds invested and has no specific end date. Unlike trading or merchant accounts, savings accounts are not meant for active use. They usually hold credit payments that recur over a period of time, at the end of which the total amount saved and the interest payments are debited to a current account.
A trading account is opened at a bank or other financial institution and is usually administered by an investment dealer. While traditionally the most common financial instrument to be held in trading accounts are stocks, they can also hold cash, including foreign currency, as well as other financial instruments such as bonds, options, commodities, futures and derivatives. Trading involves the frequent buying and selling of any financial instrument with the goal of generating returns that would outperform the buy-and-hold strategy that is fairly common among investors.
Our professional team of lawyers and bank agents will help you choose the right bank and type of account. We have many years of experience working with private and corporate clients. If you have any questions regarding bank accounts and their different features, please take a look at our F.A.Q. section section or contact us now.
Favoured jurisdictions for banking
We can assist with bank account solutions in numerous jurisdictions, however, some may offer more benefits in terms of confidentiality, asset protection, and financial sector legislation. Following jurisdictions are recommended for banking and payment solutions.
|Private acc.||Corporate acc.||Merchant acc.|